An increase of the Bank of England base rate to 0.25% (from 0.10%) this month signals the MPC’s desire to control inflation despite the onset of the Omicron variant.
Uncertainty still exists around the nature of increased inflation, as well as the extent of Omicron’s impact on economic recovery.
Notwithstanding this uncertainty, we are still seeing strong appetite from lenders for good quality assets and we are continuing to advise our clients to:
- Review hedging strategies, given the current volatility
- Maintain a level of agility to respond to favourable market developments
- Produce robust business plans with a focus on stress testing
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