The FD verdict: Who’s benefitting from low interest rates?

The MPC, the Monetary Policy Committee of the BoE, voted seven-to-two to keep interest rates at a record low of 0.5 per cent. 

Jonathan Pryor, head of FX dealing at Investec Corporate and Institutional Treasury, said it all comes back to the situation in Europe. “As we approach the vital third-quarter GDP release on Friday this is likely to keep sterling underpinned as the concerns around growth and an extended period of low inflation continue to bubble to the surface.”

And while low interest rates don’t bode well for the UK economy, British companies looking for funds could stand to gain from it.

But if the economy suffers, are businesses really benefitting from relatively short-term gains in loan interest rates?

In this week’s FD verdict, we put it to you.

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