British companies are at higher risk of bankruptcy
It has been reported that a total of 28,000 UK companies could fail next year due to high interest rates and borrowing costs.
In the statement from the London-based Center for Economic and Business Research (CEBR), it is recalled that a total of 6,342 companies went bankrupt in the second quarter of the year, according to the institution’s modeling, 7,000 companies in each quarter of 2024. in the country. It was noted that a total of 28 thousand companies in total may face the risk of bankruptcy.
The statement, which is a reflection of the Bank of England’s (BoE’s) interest rate hike policy, said: “If large-scale investments are delayed due to high borrowing costs and companies continue to fail, this will have tangible effects on the economy. from material suppliers to workers losing their jobs,” the statement said.
HIGHEST INTEREST IN 15 YEARS
According to data published by the British government in July, the number of companies that failed in the country in the second quarter of this year reached its highest level since 2009 with 6,342.
Last month, the Bank of England (BoE) raised the policy rate by 25 basis points to 5.25 percent.
In this way, the policy rate reached the highest level of the last 15 years.
The Bank of England is still keeping its inflation target at 2 percent. (AA)
Source: Sozcu
Andrew Dwight is an author and economy journalist who writes for 24 News Globe. He has a deep understanding of financial markets and a passion for analyzing economic trends and news. With a talent for breaking down complex economic concepts into easily understandable terms, Andrew has become a respected voice in the field of economics journalism.
