Commenting on the decision by the Bank of England’s Monetary Policy Committeeto cut interest rates to 0.1%,Suren Thiru, Head of Economics of the British Chambers of Commerce (BCC), said:

“The decision to cut interest rates to their lowest ever levels and restart quantitative easing reflects an increasingly dire near-term outlook for the UK economy.

“This may give a short-term boost to market confidence, but will have little long-term effect unless it translates topractical support for businesses. It is critical that the Bank of England workswith financial institutions to ease cash flow challenges for firms on the ground in this increasingly turbulent period.”