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Interest Rate Cut "the only tool left in the shed"

August 4, 2016 1:23 PM

Money / banknotes (pounds sterling) in handCommenting on the decision of the Bank of England to cut interest rates to a record low, Liberal Democrat Treasury Spokesperson, Susan Kramer, said:

"This is a necessary move by the Bank of England to help our economy as it reels from the impact of Brexit, but we cannot pretend this isn't a deeply worrying sign.

"The Bank has now used the only major tool left in its shed. Over the coming years we are at risk of having to go into negative territory. We are at the whims of what happens next.

"It is crucial that we do not lock ourselves in to a race to the bottom, with interest rate cuts, devalued Sterling, tax rates that would be better suited to a tax haven and hiring freezes across business - all to offset the costs that will fall on all of us if Brexit negotiations fails to secure access to the single market. An economy based on these measures is not sustainable."