Shaping the BoE’s interest rate decisions - Comment on GDP from Richard Pike at Phoebus Software

12 September 2022

Richard Pike, chief sales and marketing officer at Phoebus Software says “We have seen a 0.2% uplift in GDP in July, but unfortunately a lot of this will be ironically, and sadly, attributed to the Queens Platinum Jubilee celebrations. The funeral on Monday is likely to have a reverse effect on GDP and so it does remain to be seen whether we technically hit a recession sooner rather than later. The oil price cap seems to be affecting the markets positively with prices lowering and this hopefully will assist the long term situation.

“Even though we are in a weeks’ mourning, there are a number of economic statements and announcements that will go ahead this week and that will shape the Bank of England’s rate decision in key areas such as employment, inflation and retail sales figures.

“Widely a 0.5% increase rate increase is expected and this is only going to squeeze many people’s household budgets, especially those on variable rates. The credit industry is seeing an upward shift in collections activities and this is only likely to continue for the foreseeable future. Those institutions with automation of manual tasks and borrower self-service will see the benefit of their investment in these areas, allowing collectors to speak with those borrowers that are more complex or in need of a more hands on approach to their circumstances.”