Nigel Green, CEO of deVere Group, criticizes the Bank of England for not making larger interest rate cuts amidst escalating economic threats from global trade tensions. He argues that a quarter-point cut is insufficient given the slowing growth, decreased business confidence, and impending risks from geopolitical turmoil. Green suggests that a more aggressive half-point reduction would demonstrate decisive action necessary to stabilize the UK economy, rather than hesitant adjustments that lag behind the challenges at hand. Financial pressures and market expectations are indicating further cuts, highlighting an urgent need for reduced borrowing costs.
With growth slowing, business confidence cracking, and the global economy facing renewed threats from President Donald Trump's erratic trade policies, the Bank's caution risks becoming part of the problem.
Central banks aren't there to observe; they're there to lead. A half-point cut would have shown the Bank is ready to act decisively in defense of the UK economy.
If the destination is clear, why take the longest road to get there?
They need confidence, clarity, and lower borrowing costs fast. A bigger rate cut would have been responsible, he argues.
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