News analysis: What impact has the rising cost of borrowing had on broking M&A?
The broking sector has continued to see significant activity when it comes to mergers and acquisitions despite potential barriers such as Covid-19 and a dwindling number of larger targets. Ida Axling asks whether inflation and rising interest rates might be the headwinds that finally dampen the appetite for deals.
Brokers have stated that high inflation and rising interest rates are no reasons to panic, and the economic climate is not having an impact on deal activity in the sector – at least not for now.
At the time of writing, the latest government figures had revealed a surprise jump in inflation to 10.4% in February. The Bank of England responded by hiking up interest rates for the 11th consecutive time to 4.25% on 23 March (see the UK inflation box below).
UK inflation and interest ratesAccordi
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