Watch your costs - it's in your interest
Businesses more reliant upon consumer spending should start preparing for what could be a rough ride in the wake of the latest interest rate hike, according to accountants and business advisers PKF East Anglia.
Many home owners across Suffolk whose fixed rate mortgage deals end in the autumn, will feel the payment shock of a year's worth of interest rate increases.
And Peter Harrup, a partner at PKF in Ipswich, says businesses need to carefully plan for this: "The rises could have an effect on what people spend and businesses should be looking at costs quite carefully in case there is a downturn as they will need to be able to cut their costs to survive it.
"Some businesses will be affected more than others, those in particular who are dependent on smaller spending such as food, leisure and retail.
"But those 'value-added' businesses will survive best. People should be looking at the costs of offering special incentives in order to maintain their business levels."