Yesterday, the Bank of England (BOE) announced that interest rates would remain at 0.25% for now...
But as they’ll review things again in November, change seems pretty likely!
The BOE’s economic goal is to have a strong pound and stable inflation, and they’ve been pretty honest about how they plan to achieve this.
The BOE guidance notes suggest that a 0.25% rise in interest rates is on the cards for November, but nothing is a done deal yet. Ultimately, they plan to make decisions based on economic data.
So, what could this mean for your company and workforce?
The average household debt is expected to hit £14,300 in 2018. That beats the £13,300 debt level just before the crash in 2008!
As it is, so many people are already running on empty. If interest rates go up, it will really affect them, especially those juggling credit cards and payday loans.
- Credit limits will be squeezed
- Meaning more debt will be exposed to high-interest rates
- The cost of managing those debt increase
And it gets even worse, 23% say financial stress makes them feel ‘physically ill’ on a weekly or monthly basis.
By 2025, millennials will make up 75% of the global workforce.
Given that, companies should be actively looking to educate their workforce about reducing debt whilst interest rates are still low!