Bank of England Base rate was set at 0.5% in March 2009. With businesses usually paying interest at a margin above base rate arguably funding for business has never been cheaper. Recent noises from the committee that sets Base Rate suggest rises are on the way. These are likely to be in very small increments but businesses are still likely to see a rise in the cost of their borrowing.
Its prudent for businesses to budget using a variety of different base rates to enable the impact rises may have to be fully evaluated.
Bank base rate history is worth reviewing,………what impact would a base rate of 10% have.