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Tandem CEO calls on Bank of England to slash interest rates to prepare for a post-Brexit world

Ricky Knox, CEO of Tandem Bank

Today the Bank of England announced that its Bank Rate remains unchanged at 0.75%

The economic uncertainty caused by Brexit means the Bank of England should look to lower the base rate in the future to encourage economic growth. While rates remain unchanged and growth is lagging, customers are effectively being encouraged to lock away money in competitive savings products.

Ricky Knox, CEO of Tandem Bank, said, “Irrespective of whether we have a no-deal Brexit, the UK economy is slowing, or just look at the problems with British car manufacturing.”

The Bank of England has voted unanimously to hold rates at 0.75% with uncertainty weighing heavily on the economy and consumers as Theresa May returns to Brussels to negotiate a Brexit deal.

Knox said, “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.”

To get the most from the current rate freeze, savers are being encouraged to capitalise on it and lock money away with banks offering competitive rates of interest. It may be their last chance before a potential post-Brexit rate drop. However, after the previous rate rise, some high street banks failed to pass on the rate to their savings customers. When looking for the best deal it is important to find an account that reflects the current interest rate.

Knox, said, “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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