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Interest Rates: The lesser of two evils for SMEs

Interest Rates: The lesser of two evils for SMEs
- A summary of todays national poll carried out to UK SMEs
Yesterday a member of the Bank of Englands interest rate-setting committee called for a raise in interest rates to help get inflation back to its 2% target. Touch Local carried out a poll amongst a sample of UK SMEs registered on our directory to find out if small business owners shared the notion that interest rates should rise to help curb inflation?
The Survey
As a small business owner, do you think interest rates should rise to help curb inflation?
The Results
Yes:                      281    (28%)
No:                       642    (63%)
Dont Know:          98      (9%)
*Total responses:  1021
The businesses who took the survey are all listed on
Two-thirds of small business respondents (63%) opposed the idea of increasing interest rates, with many believing that the raise would result in a far greater cost to their business than any change in inflation. Just under a third of respondents (28%) would welcome a rise in interest rates if it led to greater control over inflation and the UK economy as a whole. A minority of business owners (9%) were unsure if they would support the change, believing that it could be imposed in the future, but no immediate adjustment should be made.
Some of the comments from the respondents:
No rise at the moment. Inflation is the lesser evil in economics at the moment. Rise in interest rates will mean less money in the economy as people have higher mortgages etc.
Leave well alone for the moment
I think there are better ways to reduce inflation, like reducing fuel costs. This Government seems reluctant to do this.
It is more important at this stage to think of the economy as a whole than to think of small businesses.
A lot of our visitors to our caravan park are elderly and living of their savings. An interest rate increase would benefit them and subsequently us as our bookings could increase.
The interest rates must rise!
Raising interest rates wont help small businesses.
It is a way that we can help our country to recover.
Interest rate rise will further dampen the already weak economy.
Stability and predictability are key to recovery. Any change creates uncertainty.


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