Bank of England Makes ‘Another Mistake’ by Pausing Rate Cuts

The Bank of England has made “another mistake” by not accelerating interest rate cuts, according to the CEO of one of the world’s largest independent financial advisory and asset management firms.

Nigel Green, CEO of deVere Group, criticized the central bank’s decision to hold rates steady following last month’s initial cut—the first in over four years. As inflation continues to ease and economic pressures grow, deVere warns that the Bank’s hesitation to implement further cuts risks stalling growth and prolonging financial uncertainty for both businesses and consumers.

“This is no time for hesitation. The Bank of England’s decision to pause rate cuts is a missed opportunity,” said Green. “We believe they should take a more aggressive approach to lower borrowing costs, drive growth, and restore confidence in the UK economy.”

He added, “Holding rates steady might seem cautious, but it doesn’t address the urgent need to support economic recovery and competitiveness. High borrowing costs continue to burden businesses, particularly in sectors like manufacturing, retail, and housing, where investment has slowed and costs remain high.”

deVere Group argues that faster rate cuts would provide much-needed relief to businesses and households, stimulating spending, encouraging investment, and driving economic momentum. “The risks of delaying further cuts—such as prolonged stagnation and a sluggish recovery—far outweigh the benefits of a wait-and-see approach,” Green remarked.

One key concern is the time lag between monetary policy decisions and their impact on the economy. Green explained, “Interest rate cuts take months to fully affect borrowing, investment, and consumer spending.” By delaying further reductions, the Bank of England risks extending the recovery timeline, as businesses and households won’t benefit from lower rates in the near term.

The recent decision by the U.S. Federal Reserve to aggressively cut rates highlights the urgency of action, Green noted. “Central banks must be flexible and responsive to rapidly changing economic conditions. The Fed’s move demonstrates its commitment to avoiding stagnation and supporting growth. The Bank of England risks falling behind.”

Green concluded by calling on the Bank to be “bolder, faster, and more ambitious” in its policy decisions. “The time for aggressive rate cuts is now, before the UK loses its competitive edge.”

He also criticized the Bank’s earlier inaction when inflation began rising, warning that continued adherence to a restrictive monetary policy could worsen challenges for firms and households across the UK.

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