After the latest banking crisis with the collapse of SVB and it’s unnerving shockwaves, it appears that there is now a switch to a positive outlook for the near future. Interest rates and borrowing costs are expected to decrease, as per a recent Ulster Bank survey that suggests a positive economic outlook for the UK and Ireland.
Even though the collapse of SVB and other banking failures may have far-reaching implications for the greater financial world, lenders are now likely to become less risk-averse because of this new outlook, making it easier, and better, for businesses to secure loans. This also can have a positive ripple effect throughout the economy, allowing businesses to access the necessary capital to grow and expand and the benefits to consumers that comes with it.
Moreover, the decrease in interest rates and borrowing costs will provide a much-needed relief to borrowers, especially those who have been struggling to keep up with the payments due to the impact of the post-pandemic inflation.
Despite the consistent challenges faced by the banking industry, governments and regulators are always taking steps to address every situation, and with the strong financial systems in place in the UK and Ireland, there are certainly reasons for optimism.
It is always important to be prepared for economic fluctuations, but with interest rates and borrowing costs expected to go down, it may be a good time for borrowers to consider taking advantage of the current situation.
However, it's essential to make informed decisions based on your financial situation and needs. It can be difficult to do this independently and Milecross are happy to help you along the way.
Does this change in outlook have you curious about your financing options? Get in touch today.