Mark Veldon, Co-Head Of EMEA At AlixPartners, Comments On The BoE's Rates Decision

"The Bank of England's decision to keep rates on hold at 3.75% underscores the challenge of managing stubborn inflation against a backdrop of fragile economic momentum. With recent data pointing to renewed price pressures, the MPC appears focused on maintaining credibility rather than moving prematurely toward easing.

"For private equity, the message is one of cautious patience. Higher-for-longer rates continue to weigh on leverage-driven returns and have extended deal timelines, particularly in the UK mid-market. However, this environment is also sharpening investor focus on fundamentals: cash generation, cost control and buy-and-build strategies are increasingly central to value creation.

"While near-term activity may remain selective, greater policy certainty allows investors to plan with more confidence. As inflation shows clearer signs of easing, the UK could see a gradual revival in deal flow, led by sectors aligned to long-term structural demand."

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