The economic uncertainty caused by Brexit means the Bank of England should look to lower the base rate in the future to encourage economic growth. Whilst rates remain unchanged and growth is lagging, customers are encouraged to lock away money in competitive savings products.
Ricky Knox, CEO of Tandem Bank, says, “Irrespective of whether we have a no-deal Brexit, the UK economy is slowing, just look at the problems with British car manufacturing.”
The Bank of England has voted unanimously to hold rates at 0.75% with uncertainty weighing heavily on the economy and consumers as Theresa May returns to Brussels to negotiate a Brexit deal.
Ricky Knox, CEO of Tandem, says, “Consumers and investors are both uncertain about the British economy. With a ‘no-deal’ still on the table, it’s unlikely that this feeling will go away anytime soon. The Bank of England should cut the interest rate to prepare the economy for a post-Brexit world.”
To get the most from the current rate freeze, savers are being encouraged to capitalise on it and lock money away with banks offering competitive rates of interest. It may be their last chance before a potential post-Brexit rate drop. However, after the previous rate rise, some high street banks failed to pass on the rate to their savings customers. When looking for the best deal it is important to find an account that reflects the current interest rate.
Ricky Knox, adds, “The Bank of England continues to warn about the adverse effects of potential Brexit scenarios and I would advocate a rate cut. The economy needs a boost from lower interest rates, but in the meantime, savers could look to capitalise on the current rates on offer from banks.”
Tandem has its customers interest at the heart of everything they do, especially as they plan for times of economic uncertainty. The bank’s fixed-term savers offer market leading rates that far exceed the current Bank Rate and it operates a unique business model where it only looks to benefit when its customers do. Whether you take out a credit card, a savings account, or switch bills, Tandem wins when you do.