UK Faces Big Costs From Overlooked Warning Signs, Bank Should Have Expanded

Bank of England Needs a Bigger Slice of the Pie

Nigel Green, the chief executive of deVere Group, has sounded an alarm: the Bank of England should have taken a bigger bite of the rate cuts if it wants to keep the UK economy from slipping into a slump. The Bank just trimmed interest rates by a modest quarter‑point to 4.25% and hinted at more cuts, but Green thinks that’s slouching when the real world is shouting for action.

Why the Bank is Playing Too Slow

Growth is stalling. Business confidence is wobbling, and global markets are gun‑fired by President Trump’s unpredictable trade moves.
Trade turmoil. UK partners are bracing for tariffs, investment is stuttering, consumers are keeping their wallets tight, and mortgages are taking a hit.
Financiers already expect. Three more cuts are on the market’s radar, which could bring the rate down to 3.5%—a giddy 175 basis points drop from the peak.

Green’s Take: “Why the Long Road?”

“If the destination is clear, why take the longest road to get there?” Nigel Green says. He argues that policymakers need to move fast and fiercely, not meander along the sidelines.

In his view, what firms and families actually feel is confidence—a clear signal that the Bank is ready to tackle the uncertainties. A half‑point (or 50‑basis point) cut would shout “We’re on it, UK!” to the world, rather than “We’re hovering.”

Why Bigger Matters

Businesses don’t juggle in an academic sandbox—they need real‑world reassurance.
Households don’t chase economic theory; they want lower borrowing costs, pronto.
Those in a state of geopolitical chaos and a shaky consumer base are craving bold moves, not knee‑jerks.

Green warns that the longer the Bank dithers, the more ground the UK loses. While gradual easing might fit textbook models, it won’t lift confidence, unlock lending, or protect the economy from a roiling trade global regime.

Leadership vs. Surprises

He isn’t calling for an unexpected shock to the market. Instead, deVere urges a clear demonstration of leadership. A 50‑basis cut would send a global message that the UK acknowledges the urgency of the moment.

In conclusion, the Bank opted for caution. In the face of potential instability, the price of caution is rising.