The RMIF says that the Government’s dependence on slashing interest rates to stimulate the economy will only work as part of a wider package.
She spoke as the Bank of England announced its latest move in interest rates. They have been cut, from 2 per cent to 1.5 per cent.
‘We urge that more direct approaches are used as soon as possible,’ said RMIF director Sue Robinson.
‘Although interest rate reductions will help borrowers, it will conversely penalise savers, and those people reliant on interest for their disposable income.
‘Unless counterbalanced with tax cuts and business support measures, further interest rate reductions could have a negligible effect on the economy.’