Two thirds of business owners anxiously wait Bank of England interest rate announcement
The upcoming Bank of England base interest rate announcement causes increased anxiety to two thirds of SME business owners according to a new study from Recognise Bank.
The SME Mental Health Report 2023 surveyed the areas of business and events that have a significant impact on mental health, with the monthly announcement affecting 66.4% of business owners.
The announcement, which takes place on 14th December, comes during a period where business owners are already suffering from increased anxiety thanks to the Autumn Budget, Black Friday and the Christmas period.
Business owners aged between 25 and 44 are most likely to suffer, with over 70% in the age bracket feeling higher levels of anxiety. However, those just starting out, aged between 18 and 24, are far less likely to struggle during this period, with only 50% doing so, while for business owners aged over 55 that figure is less than 40%.
During the last announcement, the Bank of England chose to keep the base rate the same, following 14 months of increases, with Andrew Bailey, governor of the bank sating that it’ll remain high until at least mid-2024. Those with businesses in London are among the most likely to follow that, with 71% of owners in the region suffering anxiety ahead of announcements, higher than any other region.
Over 60% of owners in each region do struggle though, and that will be especially the case this month, with 64% of business owners also suffering heightened anxiety levels during the Christmas period.
Younger business owners are most likely to be affected by stress and anxiety of Christmas. 72% of aged between 25 and 34 suffer more, alongside 75% of under 25s. However, like the Bank of England base rate announcements, with age comes experience as only 45% of business owners aged 55+ see a spike in anxiety during this time.
Mark Bampton, chief commercial officer at Recognise Bank, said, “With the Bank of England increasing interest rates regularly for the last two years, it’s no surprise to see the hikes having a large impact on many business owners’ mental health.
“This month it’s going to be particularly impactful, following the Autumn Budget announcement and peak season for so many businesses. For those owners that are struggling with their mental health, it’s important to seek help with social enterprises such as Mental Health First Aid England, of whom we partnered with for this study, providing excellent training and support.”
You can view the full study at: https://www.recognisebank.co.uk/news/mental-health-in-smes-2023-report/
