The Bank of England’s recent decision to pause interest rate hikes has been met with relief, but it should go further and stop hikes altogether
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The Bank of England’s recent decision to pause interest rate hikes has been met with relief, but it should go further and stop hikes altogether – and clearly communicate this, warns the CEO of one of the world’s largest independent financial advisory, asset management and fintech organizations.
The warning from Nigel Green, chief executive of deVere Group comes as the UK’s central bank kept rates steady at 5.25% on Thursday. It’s the first time in 15 meetings it has not raised rates.
He says: “We champion the Bank of England’s move to hold interest rates steady, but the central bank policymakers should go further and commit to stopping the hiking agenda, rather than just pausing it.
“The battle against inflation is gradually being won. Further squeezing already weak economic growth through making borrowing costs for consumers and companies down the line could leave long-term scars on the UK economy.
“Further stifling economic growth by resuming rate rises next time around will lead to yet more decline in investment, entrepreneurial activity, development, innovation – and therefore jobs and a decline in overall economic well-being.
