Comments from business leaders reacting to the Bank of England’s decision to cut rates to 0.1% and the economic damage caused by coronavirus.
Comments On BoE's Decision To Cut Rates
John Ellmore, Director of KnowYourMoney.co.uk:
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“This is an unprecedented decision from the Bank of England and will impact every consumer in the UK. Whilst this will come as welcome news for borrowers, low rates will not have a big impact on savers who are already facing difficult conditions.
“Covid-19 is a long-term issue, so it is likely that many consumers will see their finances stretched like never before. Particularly with rumours of a London lockdown, it is likely that many employees are fearing the long-term impact this will have on their finances. That’s why it is vital to know where to look for help. I’d start by approaching charities such as Citizen’s Advice. They will be able to offer guidance to help consumers feel more in control – something many of us yearn for in such uncertain times.”
Jamie Johnson, CEO of FJP Investment:
Another day and another bold step taken to fight off the economic damage caused by coronavirus. Consumers, investors and businesses will welcome support wherever they can find it; but of course, cutting interest rates can have markedly different effects on different people depending on their financial profile.
The important thing right now, however, is that both the Bank of England and the Government are clearly not scared to make the fast and decision actions we need. I take confidence from that. Such is the pace of change with the Covid-19 pandemic, I would expect many more decisions like this in the days ahead – people must monitor the situation closely therefore and keep up-to-speed with how things unfold, which might mean seeking advice to help explain how certain changes could impact them.
Worst crisis since WWII
Paresh Raja, CEO of Market Financial Solution:
Not since the Second World War have we seen so many emergency actions taken by the country’s leaders to ward off an economic crisis and keep the lights of houses and businesses switched on. This latest decision to cut rates by the Bank of England, while not entirely surprising, will have a further impact on both consumers and businesses, particularly financial lenders.
The challenge for all of us is to remain responsive – we must listen to the guidance offered by experts and accept that people are making decisions like in the interest of the UK population and its economy.