LAVA Advisory Partners: BoE decision is a welcome step forward
Hamish Martin, Partner at LAVA Advisory Partners, comments on today's decision by the Bank of England:
'Today’s decision is a welcome step forward in this cycle of cautious easing, and might spell the start of open season for dealmakers after a lengthy period of elevated borrowing costs. Lower financing rates are likely to reanimate both private equity and corporate acquirers across a broad range of sectors, which is especially good news for rate-sensitive industries like real estate, consumer, and industrials. While inflation is still above the 2% target and growth is still sluggish, today’s move is a starting pistol that should help revive deal pipelines that have stalled due to the cost of capital. With August traditionally quiet, I think we'll see the real benefits come September, when holidays are over and everyone's back to work and pushing for a strong end to the year.'
