Stubbornly High Interest Rates Risk Squeezing the Life Out of UK Companies
- More than $15 billion of UK corporate debt is distressed
- ‘Heavy chains’ pulling down Britain’s growth, says economist
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The UK is facing a “double whammy” as higher-for-longer interest rates begin to bite, with the country particularly vulnerable to a pullback in consumer spending and knock on consequences for corporate debt.
The Bank of England warned this week that the full impact of elevated borrowing costs has yet to fully pass through, although about two thirds of UK adults have already cut back on discretionary purchases and retail sales are almost flat by volume. More households are also turning to credit card debt, which is growing by double digits annually.