Home owners and businesses are desperate for an interest rate cut from the Bank of England this week, according to finance experts.
News last week that the UK economy has shrunk for two months in a row has triggered fears of a recession.
At the same time, central banks in Europe, the USA and China have been cutting interest rates to head off a slowdown in key economies around the globe.
By contrast, leading figures on the Bank of England’s Monetary Policy Committee (MPC), including the governor, Andrew Bailey, have suggested they will delay any cuts to February or beyond.
The cautious approach has drawn condemnation from people at the sharp end of high borrowing costs, who say there is an urgent need for a 0.25 percentage point cut in the 4.75 percent base rate.
Keith Budden, Managing Director at training business Ensurety said: “Ask any business owner, or any mortgage holder, and the answer to whether the Bank of England should cut rates would be a definite yes.
“The problem is that the Bank of England Monetary Policy Committee has more Craig Revel Horwoods than Anton Du Bekes.
“While the public want a 10 we are more likely to get a seven.
“With businesses set to feel the full force of the combined Employers’ NIC and Living Wage hikes, and energy and water bills likely to increase yet again, even a 0.25 cut in the base rate would make a real positive impact and be the best Christmas present the Bank of England could give to the economy.
“It may also hopefully be enough for us to avoid a recession.”
Mike Staton, Director at Staton Mortgages told Newspage: “The Bank of England should 100 percent cut rates this week.
“It is about time the UK public were given respite from the disturbing previous two years. The UK needs to see growth and the Bank of England needs to act now to relieve the mental strain on the public.
“The UK public deserves the right to move on with their lives and to start to plan for a more stable future without the fear of making their mortgage payment next month.”
Rakesh Dua, CEO at DUA Accountancy & Business Consultancy, called for a cut now, saying: “Sometimes the Bank of England needs to focus on what needs fixing urgently and in my view that’s getting growth stimulated and bringing back consumer confidence.
“We need a bounce-back feeling to go into Christmas with and to start the new year.”
Graham Cox, Director at Bridging Hub, complained: “With an economy on the brink of recession, the Bank of England should cut the base rate this week.
“Any inflation concerns must surely be tempered by the low level of UK business confidence expressed in recent surveys.
“Living standards have plummeted over the past 15 years, and being cautious is not going to stop the rot.”
Tony Redondo, Founder at Cosmos Currency Exchange, pointed to recent research by Julian Jessop, economics fellow at the IEA, who said the UK should be placed on “recession watch”.
Mr Redondo warned: “The situation may be even more dire, with the spectre of stagflation looming over the economy … Businesses should prepare for an extremely challenging economic landscape ahead.”
Stephen Perkins, Managing Director at Yellow Brick Mortgages, said home buyers need help, adding: “A base rate reduction is needed to save the economy, but the Bank of England will leave the superhero cape in the closet and hold rates as they are.
“The cuts will come next year, but as usual they will be too little too late.”
Ranald Mitchell, Director at Charwin Mortgages, called on the Bank to “show some guts”.
He warned: “The economy is shrinking, Labour’s Budget has killed confidence, and the UK is teetering on the edge of recession.
“Stop dithering, stop delaying—act boldly and kickstart the recovery before it’s too late.”
