The Bank of England should have “gone bigger” with rate cuts to match the scale of the threat the UK now faces, warns the CEO of one of the world’s largest independent financial advisory and asset management organizations.
The warning from Nigel Green of deVere Group comes as The Bank of England cut UK interest rates by a quarter-point to 4.25 per cent and signalled further reductions to come as the uncertainty of US President Donald Trump’s global trade war impacts growth.
“With growth slowing, business confidence cracking, and the global economy facing renewed threats from President Donald Trump’s erratic trade policies, the Bank’s caution risks becoming part of the problem,” says the deVere chief executive.
“This decision smacks of hesitation at a time when speed and scale are what matter most.
“Central banks aren’t there to observe; they’re there to lead. A half-point cut would have shown the Bank is ready to act decisively in defence of the UK economy. Instead, it blinked.”
The warning signs aren’t subtle. Global trade is in flux. The UK’s biggest trading partners are bracing for more tariff disruption, business investment is slowing, consumer demand is soft, and mortgage activity is weakening.
“And yet, the Bank is still taking baby steps.”
Financial markets are already pricing in three more cuts this year. That would bring the base rate to 3.5%—a full 175 basis points down from the peak.
“If the destination is clear, why take the longest road to get there?” asks Nigel Green.
Policymakers often talk about balance. But in the real world, businesses don’t operate in academic models and households don’t feel economic theory.
They need confidence, clarity, and lower borrowing costs fast. A bigger rate cut would have been responsible, he argues.
“We’re seeing exactly the kind of uncertainty that rate-setters should be prepared for: geopolitical chaos, a fragile consumer, and the lingering effects of a cost-of-living crisis,” Nigel Green adds. “Sometimes, the safer move is the bolder one.”
He continues: “The longer the Bank dithers, the more ground it loses. Slow and steady easing may suit textbook theory, but it won’t lift confidence, unlock lending, or shield the UK from the fallout of a destabilized global trade regime.”
This isn’t about surprising the market, according to deVere. It’s about showing leadership. A 50-basis point cut would have been read globally as a sign that the UK understands the moment.
Nigel Green concludes: “The Bank chose caution. And the price of caution, in this environment, is rising.”
