3 London-Listed Stocks That Will Continue to Benefit From High Interest Rates

Despite the recent pause from the BoE, interest rates in the UK look set to remain high, with inflation remaining sticky. And according to the IMF, a further rate rise is possible.

While this can be a challenging environment for many businesses, there are certain sectors and companies that are well-positioned to benefit from high interest rates.

Three London-listed stocks likely to continue to benefit or remain resilient during a persistently high interest rate environment are HSBC (LON: HSBA), B&M (LON: BME), and Unilever (LON: ULVR). Here's why:

HSBC

HSBC is one of the largest banks in the world, with a global presence. The bank's share price has risen 27% in 2023 and more than 45% in the last 12 months. 

HSBC's profits benefit from high interest rates, as it can charge higher interest rates on loans and other products.

In addition, the bank's Chief Financial Officer Georges Elhedery recently said that HSBC can continue to increase its global revenues even with central banks looking to dial down interest rate rises. The company is well-positioned in the current environment and should be able to weather any economic storms.

B&M

Discount retailer B&M sells a wide range of products, including food, homeware, and clothing. B&M shares have performed strongly this year, up 39%, while in the last 12 months, it has rallied 85%. 

The company's low prices are key in appealing to consumers who are feeling the pinch of higher interest rates. In addition, B&M's business model is relatively resilient to economic downturns, as people still need to buy essential items, such as food and household goods.

Unilever 

Unilever is a large and well-established company with a strong track record. While it hasn't performed as well as HSBC or B&M, its stock price has remained resilient, declining 4% this year and rising 0.3% in the last 12 months. 

The company's business model is resilient during economic downturns. Unilever holds one of the most extensive consumer goods ranges, and people will always need essential products, regardless of whether the economic environment is positive or negative.

Overall, HSBC, B&M, and GSK are three London-listed stocks that are likely to continue to benefit or remain resilient as interest rates look as though they will at least remain “higher for longer.”