Comments on: No rate cut soon http://www.smallbizpod.co.uk/blog/2008/04/02/no-rate-cut-soon/ The small business blog of SmallBizPod - inspiration and practical advice for entrepreneurs Tue, 02 Dec 2008 02:39:58 +0000 http://wordpress.org/?v=2.6.5 By: Whoops… | SmallBizPod - small business blog http://www.smallbizpod.co.uk/blog/2008/04/02/no-rate-cut-soon/#comment-128416 Whoops… | SmallBizPod - small business blog Thu, 10 Apr 2008 12:51:11 +0000 http://www.smallbizpod.co.uk/blog/?p=397#comment-128416 [...] It has come to my attention that a number of readers may have been given the impression in one of my recent posts that there was no rate cut imminent. [...] [...] It has come to my attention that a number of readers may have been given the impression in one of my recent posts that there was no rate cut imminent. [...]

]]> By: John Harrison http://www.smallbizpod.co.uk/blog/2008/04/02/no-rate-cut-soon/#comment-127964 John Harrison Tue, 08 Apr 2008 14:05:12 +0000 http://www.smallbizpod.co.uk/blog/?p=397#comment-127964 Even if the rate was cut I doubt that the highstreet banks would elect to pass on the benefit. The sooner the full picture is disclosed on just how bad things are for all the banks and money markets the better. Even if the rate was cut I doubt that the highstreet banks would elect to pass on the benefit. The sooner the full picture is disclosed on just how bad things are for all the banks and money markets the better.

]]> By: Will - ArenaFlowers.com http://www.smallbizpod.co.uk/blog/2008/04/02/no-rate-cut-soon/#comment-126244 Will - ArenaFlowers.com Thu, 03 Apr 2008 10:44:18 +0000 http://www.smallbizpod.co.uk/blog/?p=397#comment-126244 Personally, I'll be very glad if there's no cut in interest rates. The interest rate drops by the BOE vs none from ECB have meant that the GBP:Euro exchange rate is horrifically bad, as holding Euro becomes relatively more beneficial over holding GBP. The exchange rate is now 1.25 where it was 1.40+ at the end of last year. You can see the graph here: http://www.x-rates.com/d/EUR/GBP/graph120.html. The depreciation in sterling is really not good news if you purchase or import a lot of your product from Euro land - in our case it's primarily flowers and it's a real pain. Clearly, hedging, through financial instruments and / or a natural hedge, would help, but in the meantime, I'll be very happy if interest rates stay where they are for now, or go up (the latter is about as likely a snowman in summer though!). Personally, I’ll be very glad if there’s no cut in interest rates. The interest rate drops by the BOE vs none from ECB have meant that the GBP:Euro exchange rate is horrifically bad, as holding Euro becomes relatively more beneficial over holding GBP. The exchange rate is now 1.25 where it was 1.40+ at the end of last year. You can see the graph here: http://www.x-rates.com/d/EUR/GBP/graph120.html.

The depreciation in sterling is really not good news if you purchase or import a lot of your product from Euro land - in our case it’s primarily flowers and it’s a real pain. Clearly, hedging, through financial instruments and / or a natural hedge, would help, but in the meantime, I’ll be very happy if interest rates stay where they are for now, or go up (the latter is about as likely a snowman in summer though!).

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