Cut rates now to boost economy, says Lloyds boss as figures show fastest rate of job cuts in five years
The boss of Lloyds Banking Group has said interest rate cuts are needed to stimulate the economy and boost confidence.
As official figures showed jobs were shed at the fastest pace in more than five years after the Budget, chief executive Charlie Nunn said he expects interest rates to fall in the coming months.
‘We are expecting [them] to continue to decline, and that’s going to give us optimism for households and businesses to invest more,’ he told CNBC at the World Economic Forum in Davos.
‘So yeah, we really do need that stimulus to get confidence to invest higher and then grow.’
The comments came after the Office for National Statistics said another 43,000 jobs disappeared in December – the most since November 2020 during the depths of the Covid pandemic.
It took job losses since Labour came to power in July 2024 to nearly 217,000.
Hopes: Lloyds Banking Group boss Charlie Nunn (pictured) said he expects interest ratesto fall in the coming months
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Official figures published today will show whether inflation fell again in December, having dropped from 3.6 per cent in October to 3.2 per cent in November.
Another sharp fall would boost hopes of a rate cut next month.
The Bank of England has cut interest rates from 5.25 per cent to 3.75 per cent since August 2024.
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