![](\"https:\/\/www.financialmirror.com\/wp-content\/uploads\/2023\/09\/oanda-marketpulse-craig-bank-of-england.jpg\")
<\/p>\n<\/p>\n
\u200bThe Bank of England must not be tempted to use a smaller-than-expected drop in inflation in March to delay interest rate cuts further, warned the CEO of a leading independent financial advisory and fintech.<\/p>\n
The UK\u2019s annual inflation rate fell in March for a second consecutive month, dropping to 3.2%.<\/p>\n
\u201cThe latest data is slightly higher than expected, but the overall outlook for inflation is positive,\u201d said deVere Group\u2019s Nigel Green.<\/p>\n
\u201cWe hope that, despite the last stretch to hitting the Bank of England\u2019s 2% target being harder and slower, overly cautious officials will not see this as yet another reason to further delay rate cuts.<\/p>\n
\u201cThey must begin to bring down the historically high rate of 5.25% from June onwards. No ifs, no buts,\u201d he said.<\/p>\n
Bank of England governor Andrew Bailey told an International Monetary Fund event in Washington that, \u201cin the UK we\u2019re disinflating at what I call full employment\u2026 Our judgement with interest rates is \u2018how much do we need to see now to be confident of the [disinflation] process\u2019.\u201d<\/p>\n
The deVere CEO noted that Bailey and his team need to hold their nerve and be proactive, saying this summer is the time for the central bank to act decisively and promptly.<\/p>\n
\u201cThe Bank of England failed with its inaction at the start, passively standing by for too long when prices were already starting to surge,\u201d Green said.<\/p>\n
\u201cIt mustn\u2019t fail now with adherence to a restrictive monetary policy which is exacerbating the challenges faced by firms and households across the United Kingdom.\u201d<\/p>\n
\u200bEarlier last month, Green explained that households stand to benefit significantly from a rate cut, as lower mortgage rates translate into reduced monthly payments, freeing up disposable income for consumption and savings.<\/p>\n
\u201cAdditionally, lower borrowing costs make homeownership more accessible for aspiring buyers, thereby stimulating demand in the housing market.<\/p>\n
\u201cBy easing financial burdens on households, a rate cut would bolster consumer confidence and spending, driving economic growth from the ground up,\u201d he said.<\/p>\n
Investors, too, have much to gain from a shift in monetary policy towards accommodative measures.<\/p>\n
Green said that lower interest rates tend to fuel demand for risk assets, such as equities, as investors seek higher returns in a low-yield environment.<\/p>\n
As equity markets thrive on the prospect of easier monetary conditions, \u201ca rate cut by the BoE would help drive stock prices and unlock investment opportunities across various sectors.\u201d<\/p>\n
The deVere CEO concluded that, \u201cthe Bank of England mustn\u2019t be tempted to delay rate cuts any longer. They must do the right thing and cut from June onwards.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"
The UK’s annual inflation rate fell to 3.2% in March.<\/p>\n","protected":false},"author":4,"featured_media":8703,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"Default","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[1],"tags":[1902,47,6497,97,1056,4950,4601,2134,5732,1498,3769,2511,2369,4893,82,2403,645,27,3251,203,6117,84,2658,5098,6973,3767,4407,6654,4857,2294,67,4808,899,374,1125,1401,187,2753,1882,3404,34,86,4833,1033,375,4054,1824,3480,4347,1565,494,849,197,3519,18],"class_list":["post-8702","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-other","tag-bank","tag-bank-of-england","tag-benefit","tag-boe-rate-cut","tag-borrowing-costs","tag-buyers","tag-central-bank","tag-challenges","tag-conditions","tag-confidence","tag-consumer-confidence","tag-costs","tag-data","tag-demand","tag-devere","tag-driving","tag-economic-growth","tag-employment","tag-england","tag-environment","tag-event","tag-fintech","tag-fuel","tag-governor","tag-governor-andrew-bailey","tag-growth","tag-hope","tag-housing","tag-housing-market","tag-income","tag-inflation","tag-inflation-rate","tag-interest","tag-interest-rate","tag-interest-rate-cuts","tag-interest-rates","tag-international","tag-investment","tag-investment-opportunities","tag-investors","tag-markets","tag-nigel-green","tag-policy","tag-prices","tag-rate-cut","tag-risk","tag-sectors","tag-spending","tag-summer","tag-surge","tag-uk","tag-uk-inflation","tag-united-kingdom","tag-washington","tag-world"],"acf":{"keyphrase":"","keywords":"","sourceimg":"","country-category":""},"yoast_head":"\n