Ideal Business Consultants

Small business success has been boosted by the Bank of England’s monetary policy, it has been claimed.   According to the Association of Business Recovery Professionals, the Bank of England’s monetary policy through the 2008-09 recession has helped maintain liability insurance holders insolvencies. Since March 2009, the Bank of England has kept its base rate at 0.5% which has undoubtedly helped small businesses to manage finances at such difficult economic conditions. The President of R3, Steven Law said that the number of companies that shut down during 2010 had declined and the historically low interest rates had helped some businesses to continue during this tough period.   Mr Law said: “The historically-low interest rates have stemmed the flow of insolvencies that usually occur post-recession, and our members have seen how invaluable HMRC’s Time to Pay scheme has been.” Despite the high rate of inflation, where Consumer Price Index (CPI) currently stands at 3.7% the Monetary Policy Committee has continued to resist the temptation to increase interest rates. Despite there being a reduced risk of insolvency now, Mr Law said that liability insurance holders who have been affected by the recent fiscal and monetary policies must continue to monitor their financial health in order to stay afloat.

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