“This cut in interest rates is a timely shot in the arm for those businesses struggling to adjust to last month’s substantial spike in business costs and households contending with burdensome mortgage costs.
“While this reduction confirms that UK interest rates are trending downwards, it won’t materially reverse the financial squeeze or slide in sentiment among households and firms, given that many other costs are rising, and global headwinds are still elevated.
“The mixed vote split in favour of relaxing policy suggests that despite the bank forecasting slightly stronger growth, concerns among policymakers over UK’s economic resilience remain prevalent, leaving the door ajar for a June rate cut.
“With inflation expected to be slightly more subdued and concerns over turbulence in the global economy likely to persist, even with a US-UK deal on trade, the case for accelerating the pace of interest rate cuts may still increase."
ENDS
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