Kevin Doran, chief investment officer at AJ Bell, comments on the Bank of England’s base rate cut to 0.1%:
“Once again we’re seeing central bankers using the playbook from the last financial crisis. Overnight we saw the ECB roll out the QE cannons and, now in an effort to be seen doing ‘something’, the Bank of England have waded in with an emergency rate cut.
“It’s the solutions of yesteryear when liquidity and credit were the problems. This time it truly is different – with a workforce on lockdown, there’s a production chasm about to open up.
“To fill the gap policy makers need to be working with Governments to introduce formal debt relief. Not forbearance, not interest holidays, but genuine relief from servicing debts as the world enters its enforced hibernation.”