CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Open account
☰
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Open account
✖

BCC urges caution over raising interest rates

Article By: ,  Financial Analyst
July 8, 2014 11:15 AM

The British Chambers of Commerce (BCC) has called for caution over a potential rising of interest rates.

Members of the BCC warned the Bank of England not to make any "hasty decisions" as it could impact on the growth ambitions of companies across the country. The business group explained that results from a survey of 7,000 companies showed that the growth had slowed between April and June and that a rising of interest rates could further hinder any future opportunities for improved operations.

Sectors such as manufacturing have eased following a surge earlier in the year and this has seen a drop in the all-time highs in the first quarter. Manufacturers have failed to hit the peaks they were recorded earlier in the year and while they are still above pre-recession levels in 2007 there has been a drop in exports and investment growth.

In June, the Bank of England's nine-members monetary policy committee (MPC) voted unanimously to keep interest rates at 0.5 per cent but the Guardian reported that two members were adopting a "wait-and-see" approach to borrowing costs. The minutes of the MPC meeting suggested that some members thought the policy decision had become "more balanced", the vote remained at 9-0 to keep rate unchanged.

The BCC is now urging the Bank of England to err on the side of caution when assessing the options around interest rates. Members said that recovery was a major priority and that there was a need to repair "our broken business finance system".

John Longworth, director general of the BCC, said: "By driving up the cost of credit for fast-growing firms, many of whom do not sit on the same healthy cash piles as their more established counterparts, early rate rises may mean more limited growth ambitions among the very firms we are counting on to drive the recovery."

Find up to date information on spread betting strategies at City Index

StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. CFD and Forex Trading are leveraged products and your capital is at risk. They may not be suitable for everyone. Please ensure you fully understand the risks involved by reading our full risk warning.

City Index is a trading name of StoneX Financial Ltd. Head and Registered Office: 1st Floor, Moor House, 120 London Wall, London, EC2Y 5ET. StoneX Financial Ltd is a company registered in England and Wales, number: 05616586. Authorised and regulated by the Financial Conduct Authority. FCA Register Number: 446717.

City Index is a trademark of StoneX Financial Ltd.

The information on this website is not targeted at the general public of any particular country. It is not intended for distribution to residents in any country where such distribution or use would contravene any local law or regulatory requirement.

© City Index 2024