![](\"https:\/\/cdn.images.express.co.uk\/img\/dynamic\/23\/590x\/secondary\/bank-of-England-base-rate-4970943.jpg?r=1695310559248\")
<\/p>\n<\/p>\n
Although the decision to pause interest rates has been met with relief, the Bank has been warned they need to \u201cgo further and commit to stopping the hiking agenda\u201d, rather than just pausing it, an expert has stated.<\/p>\n
The base rate announcement followed a surprise fall in inflation in August \u2013 despite rising oil prices, some weakness creeping into the jobs market, and the Federal Reserve in the US deciding to halt rate rises for the time being.<\/p>\n
Many expected the base rate to rise, however, the surprise fall in inflation to 6.7 percent wiped this off the board.<\/p>\n
Despite the slight relief for homeowners, the Bank of England made it clear that it\u2019s still locked in a fight against inflation.<\/p>\n
Rates could go up again in future, and at the very least are expected to hold at this level for a significant period until inflation is under control.<\/p>\n
READ MORE: <\/strong> Interest rate rises ‘not at an end’ despite Bank of England freeze<\/strong><\/p>\n Nigel Green, chief executive of deVere Group urged the Bank to \u201cprovide clear and transparent communication about its future plans\u201d regarding the base rate.<\/p>\n He said: \u201cWe champion the Bank of England\u2019s move to hold interest rates steady, but the central bank policymakers should go further and commit to stopping the hiking agenda, rather than just pausing it.<\/p>\n \u201cThe battle against inflation is gradually being won. Further squeezing already weak economic growth through making borrowing costs for consumers and companies down the line could leave long-term scars on the UK economy.<\/p>\n \u201cFurther stifling economic growth by resuming rate rises next time around will lead to yet more decline in investment, entrepreneurial activity, development, innovation \u2013 and therefore jobs and a decline in overall economic well-being.\u201d<\/p>\n Don’t miss… <\/strong> We use your sign-up to provide content in ways you’ve consented to and to improve our understanding of you. This may include adverts from us and 3rd parties based on our understanding. You can unsubscribe at any time. More info<\/p>\n He explained the Bank of England needs to stop base rate hikes, and not pause them as it typically takes about two years for the full effect of rate hikes to filter fully into the economy.<\/p>\n Moreover, clarity in communication about the policymakers\u2019 future intentions is \u201cparamount to instil confidence and predictability in the financial markets and the broader economy.\u201d<\/p>\n Mr Green continued: \u201cWhile a pause can provide a breather, it doesn\u2019t remove the uncertainty surrounding future rate hikes.<\/p>\n \u201cBusinesses and consumers need stability and predictability to make long-term decisions, and the constant threat of rate hikes can deter investments and spending.\u201d<\/p>\n If the Bank of England continues to be vague, it will create confusion in the financial markets and among the public, he warned.<\/p>\n Even if the Bank decides to keep interest rates the same, or resume increasing them, it\u2019s \u201cimperative they [Boe] provides clear and transparent guidance on its future plans\u201d.<\/p>\n The deVere CEO concludes: \u201cThe UK central bank must consider stopping this current rate hike cycle altogether and provide clear and transparent communication about its future plans.<\/p>\n \u201cClarity in monetary policy is not only essential for financial markets but also for businesses and consumers who rely on stable economic conditions to plan for the future.\u201d<\/p>\n![](\"https:\/\/cdn.images.express.co.uk\/img\/dynamic\/23\/590x\/secondary\/base-rate-4970946.jpg?r=1695310559325\")
<\/p>\n
BoE interest rate freeze is ‘lifesaver’. Looking forward to a cut[LATEST] <\/strong>
BoE ‘wrong again’ on inflation but interest rates still expected to rise[ANALYSIS] <\/strong>
Britons miss out on \u00a317billion a year from banks profiteering off low interest[INSIGHT] <\/strong><\/p>\n![](\"https:\/\/cdn.images.express.co.uk\/img\/dynamic\/23\/590x\/secondary\/interest-rates-4970944.jpg?r=1695310559363\")
<\/p>\n