'The solution of yesteryear': Industry says BoE rate cut is 'meaningless'

Move from central bank is ‘surprising’

Lauren Mason
clock • 4 min read

The “surprising” decision from Bank of England Governor Andrew Bailey to cut UK interest rates to their lowest-ever level of 0.1% has been slated by industry commentators, who have called the move “meaningless”, “the solution of yesteryear” and nothing more than a bid to “be seen doing something” after the European Central Bank (ECB) “rolled out the QE cannons” yesterday (19 March).

Bailey announced the bank would slash UK interest rates by 15 basis points, having already cut rates by 50 basis points one week before from 0.75% to 0.25%. Yesterday's move, which is the latest monetary policy bid to help tackle the economic fallout caused by the coronavirus pandemic, marks the lowest interest rates seen in England since the Bank was founded in 1649. Additionally, the BoE voted in favour of an additional £200bn of government bonds and sterling non-financial investment-grade corporate bonds purchases, bringing the total to £645bn. Kevin Doran, chief investment offi...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Investment

NextWealth MD Hopkins on staying ahead of advice sector changes, data challenges and flattening MPS fees

NextWealth MD Hopkins on staying ahead of advice sector changes, data challenges and flattening MPS fees

Making technology work better

Katrina Lloyd
clock 03 July 2025 • 9 min read
IFAs look to boost clients' private markets exposure

IFAs look to boost clients' private markets exposure

Expect increase in stock market volatility

Jen Frost
clock 02 July 2025 • 2 min read
Winds of change: Private markets access for retail investors

Winds of change: Private markets access for retail investors

Investing in LTAFs, accessibility aside, needs careful consideration

Dorian Hughes
clock 02 July 2025 • 5 min read