In July 2023, the European Central Bank (ECB) increased its benchmark rate to 3.75% — a level not seen for 22 years. The recent rate rises follow a global trend, with other Western central banks having increased rates with equal, if not greater fervour, with rates now standing above 5% in the UK and US.
Economists and analysts in every sector have spilled much ink predicting the consequences of rate rises, such as the knock-on effect on asset values, corporate cash flow, consumer spending and ultimately company solvency.
