Mark Veldon, UK Country Co-Leader and Co-Leader of EMEA Private Equity at AlixPartners, comments on the Bank of England’s interest rate decision

“With the Bank of England (BoE) deciding to hold interest rates steady, the cost of borrowing remains unchanged, so there is unlikely to yet be any huge surges in investment and private equity activity. Inflationary pressures continue to linger and complicate matters, especially in core sectors like the services industries, so investors need to continue to focus on playing the long game.

“The UK economy remains on somewhat fragile footing, with weak growth and many businesses feeling the pinch. For investors, then, this underscores the importance of caution. It's important to anticipate possible market fluctuations and ensure strategies align accordingly.

“The BoE’s reluctance to cut rates shows that the Bank is clearly mindful of the growing complexity we are witnessing in the economic landscape. Investors need to take all of this into account and, with trade disruptions and fiscal challenges adding a further layer of complexity, remain flexible in their approach.”

For further information, please contact Mark Veldon, UK Country Co-Leader and Co-Leader of EMEA Private Equity.