Interest Rates, Inflation and Crystal Ball Gazing

Many of you will have seen the changes to base rates and also be experiencing the current price inflation.

I am afraid with what is currently happening in Ukraine the world is now experiencing changes that most of us have not really seen before and not anticipated. Hindsight is of course a wonderful thing.

Some of you may have bought fertiliser etc in advance and will perhaps be amazed by the potential for profits this year. 2023 is not that far away and with current prices who knows what the following year will bring? A lot of crystal ball gazing will be required to budget forward.

Base rates have risen by what in modern terms is a lot, but in historic terms is a very small rise. Fixed rates have moved significantly and those of you thinking about fixing existing borrowing may be surprised by the increases.

Whilst the argument for fixing rates is that you have a known cost, your bank will still be looking at what your overall loan repayments are for all finance. They will continue to stress test the repayments to make sure they are affordable. Do you know the true cost of your borrowings including HP?

If you need any help looking at your own figures give me a call
on 07434 723443 or e-mail edwarren@fcgagric.com

Midwest Consulting Limited is regulated by the Financial Conduct Authority and is a registered credit broker FRN793780. We are members of the NACFB.