Economy showing signs of rate pressure

Kevin Brown, savings specialist at Scottish Friendly, comments on the latest GDP figures: “These figures will focus minds on the Monetary Policy Committee (MPC) that bringing rates down is the right move in order to ease pressure on businesses and households as we move into the winter.

“Inflation is largely on track, but with GDP showing signs of stalling over summer, it suggests that households, and the wider economy, are now feeling the effects of higher rates. If these rates don’t ease then we could see worse numbers in the near future – which could lead to a spike in unemployment.

“All eyes will now be on the Autumn Budget and what that may contain. Households will hope for fewer tough measures than have been predicted, particularly as the economy falters. It is important in this context for families to prepare for any event, which makes thinking about rainy day funds and long-term investing goals all the more important.”