Commenting on how the BofE may have to cut interest rates and employ a ‘lower for longer’ approach

Commenting on how the BofE may have to cut interest rates, Artur Baluszynski, Head of Research at Henderson Rowe, said: “Even if we avoid a no-deal Brexit, the last three years have done enough damage to the UK economy to warrant a ‘lower for longer’ approach to interest rates. With a short average fixed-term period on their mortgages, UK households are very sensitive to any hikes in interest rates so unless we experience a currency crisis, the Bank of England should continue to keep the ‘cost of money’ reasonably low.”