Deloitte’s UK economist comments on today’s interest rate decision

Commenting on the latest interest rate decision, published today by the Bank of England, Debapratim De, UK economist at Deloitte, said:

“Given growing expectations of a rate cut this month, the overwhelming vote in favour of holding rates comes as a surprise. The post-election bounce in business sentiment, also reflected in our Deloitte CFO Survey, seems to have bought the Bank some time to assess how the real economy responds to a reduction in policy uncertainty.

“But, despite the rise in optimism, corporates continue to favour defensive strategies such as cost reduction over greater capital expenditure. Without a revival in demand, this improvement in sentiment may not translate into a pickup in activity.”

End

Notes to editors

About Deloitte
In this press release references to “Deloitte” are references to one or more of Deloitte Touche Tohmatsu Limited (“DTTL”) a UK private company limited by guarantee, and its network of member firms, each of which is a legally separate and independent entity.

Please see deloitte.com/about for a detailed description of the legal structure of DTTL and its member firms.

Deloitte LLP is a subsidiary of Deloitte NSE LLP, which is a member firm of DTTL, and is among the UK’s leading professional services firms.

The information contained in this press release is correct at the time of going to press.

For more information, please visit www.deloitte.co.uk

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