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Challenger bank CEO calls for Bank of England rate cut

Yesterday, the Bank of England's Monetary Policy Committee voted unanimously to hold Bank Rate at 0.75%, citing growing Brexit uncertainty.

Rozi Jones
|
8th February 2019
Ricky Knox Tandem new
"The Bank of England should cut the interest rate to prepare the economy for a post-Brexit world."

Ricky Knox, CEO of digital-only challenger bank Tandem, says the Bank of England should cut the interest rates to boost the economy in the midst of Brexit uncertainty.

Yesterday, the Bank of England's Monetary Policy Committee voted unanimously to hold Bank Rate at 0.75%, citing growing Brexit uncertainty.

The Committee noted that the economy has continued to slow over recent months, and UK growth in particular "appears to have weakened further in early 2019".

The Bank of England says the economic outlook will "continue to depend significantly on the nature of EU withdrawal", however Knox believes that the base rate should be lowered to encourage economic growth.

Ricky Knox said: “Irrespective of whether we have a no-deal Brexit, the UK economy is slowing. Just look at the problems with British car manufacturing.

“Consumers and investors are both uncertain about the British economy. With a ‘no-deal’ still on the table it’s unlikely that this feeling will go away anytime soon. The Bank of England should cut the interest rate to prepare the economy for a post-Brexit world.

“The Bank of England continues to warn about the adverse effects of potential Brexit scenarios and I would advocate a rate cut. The economy needs a boost from lower interest rates, but in the meantime savers could look to capitalise on the current rates on offer from banks.”

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