Produced by Accountancy Age, in association with Reed Accountancy Personnel, the survey of more than 200 FDs revealed that 45% believe their businesses would definitely or probably be hit by an interest rate hike. The Bank of England monetary policy committee has raised rates four times in six months and many economists are forecasting more rate rises. ‘We have already lost export business due to the strength of sterling and this will exacerbate the situation,’ said Aerospace Forgings FD Michael Sutton. But some 44% said a further rise in interest rates would definitely not, or would probably not, affect their businesses. Link Research FD Nick Rand said: ‘My business will benefit because I organise the cash flow so there is always surplus cash which earns interest. As a prudent chartered accountant, I prefer having physical cash rather than speculating. However, on a national basis, interest rates rising will have an adverse effect on most businesses.’ Just 11% of FDs questioned remained neutral. ‘There are always winners and losers when the Bank of England raises the interest rates,’ said Paresh Samat, FD of SBJ ESS.
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