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Commentary: Are interest-rate cuts always good news?
• Commentary: Are interest-rate cuts always good news? gm0033 Tue, 11/08/2026 – 10:02 Press release The following expert comment below was written by Professor Jon Williams, Professor of Banking and Finance at the University of Surrey, on the less obvious risks created by interest-rate changes, and why both higher and lower rates can encourage riskier financial behaviour.
• Professor Jon Williams “Interest-rate changes cannot please everyone, but importantly, neither higher nor lower rates are without risk. “When rates rise, higher borrowing costs create a resource-allocation challenge for households and businesses.
• Companies facing increased repayments and operating costs may look for additional revenue to cover them, potentially encouraging greater risk-taking.