News in brief: expansion, interest rates, Bank of England, China

News in brief
News in brief

Steady interest rates are an opportunity for expansion

Businesses have expressed their relief following the announcement that the Bank of England will be maintaining interest rates at 0.5%.

Foreign exchange platform Kantox CEO and founder Philippe Gelis stated that, with the “recent downgrade of the outlook for inflation, the deterioration of UK macroeconomic indicators and the increasing global concerns about the consequences of the Chinese economic slowdown, it was hard to envision any other outcome.”

Gelis went on to say that the near-zero levels will ease conditions to access credit for businesses that will ultimately increase business activity and thus promote economic growth. UK exporters will be particularly pleased with this resul,t as they would most likely have been forced to raise their prices had the rates been increased.

Gelis recommends that businesses take advantage of the opportunity to expand and export to new markets.

Chinese companies play key role in UK economy

The fastest growing Chinese companies in the UK continue to play a vital role in maintaining a vibrant UK economy according to the findings of the Grant Thornton 投英 Tou Ying Tracker 2015, which is produced in partnership with China Daily.

The annual tracker, which monitors the top 25 fastest- growing Chinese companies in the UK, found that these businesses contributed more than £35 billion to the UK economy in 2014, up from £25 billion in 2013, and employ more than2,500 people. Overall growth of businesses on the tracker was up 44% in 2014, a 6% increase on 2013 at 38%.

Grant Thornton UK head of China-Britain business group Simon Bevan said: "While state-owned enterprises continue to make a major contribution and help to create a platform for sustainable growth, the tracker demonstrates the growing importance of China's dynamic private sector. Last year just five of the Top 25 companies were private sector rather than state-owned enterprises; the figure this year has doubled to 10."