The Bank of England has raised interest rates 14 times since the end of 2021. The Center for Economics and Business Research said debt taken on during the pandemic, higher borrowing costs and the cost of living crisis will push more businesses into bankruptcy, especially in the retail and hospitality sectors. Around 7,000 businesses are likely to fail every quarter in 2024 as high interest rates cause financial strain and the UK economy enters recession. The bank may begin to cut interest rates in an attempt to stimulate demand. However, the Bank has signaled that interest rates are likely to remain high for longer as it grapples with high inflation.
