British Chamber – pressure on businesses due to rising interest rates
by Kay Murchie
Confirmation of a slowdown in the property market have been noted following figures from Your Move estate agents, suggesting a price rise of just 0.94% in the past month and with a minor rise of 0.34% expected next month.
Increasing interest rates which are now at 5.75% are thought to be responsible for the slowdown. In addition, the launch of Home Information Packs this week will add to the pressure.
The Land Registry detailed a drop in prices for only the 7th month in the past 60. Prices increased in Cardiff, the Vale of Glamorgan, Pembrokeshire and Carmarthenshire, but decreased elsewhere.
In the meantime, the British Chamber of Commerce has requested that the Bank of England keep rates on hold. A spokesperson commented that the recent floods are putting a strain on businesses. There is a sharp decline in global credit markets and this has generated widespread deterioration on most stock markets. With this in mind, it would be risky to increase the base rate.
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