A further rise in increase rates last month will be another blow for farming businesses already feeling the squeeze financially.
The Bank of England raised its base rate of interest from 3.5% to 4%, the highest rate in 14 years, in an effort to combat inflation.
While the bank said the UK was still set to enter recession this year, it was expected to be shorter than previously thought, with the rate inflation seeming to be slowing down.
Martyn Dobinson, partner at Saffery Champness and a member of the firms Land and Rural Practice Group, said it was yet another blow for those borrowing.
He said: There are likely to be further interest rate rises ahead. In these really difficult times, we cannot emphasise enough the importance of budgeting and planning ahead, and managing cashflow and debt effectively to ride out the storm.
Everyone is facing an uncertain climate and extreme pressure on businesses and the farm and rural business sector is no exception. If you are uncertain as to what steps you can take then do speak to your professional adviser.
