Commenting on the BoE measures announced today Rob Donaldson, Head of Corporate Finance at RSM, said
‘The market was expecting and the market received a sizeable stimulus from the BoE today.
‘Whilst the availability of hard data at the moment is relatively thin, the BoE are clearly looking ahead and anticipating a significant slowdown in the economy. These measures will help but, by themselves, will not be enough to restore momentum.
‘However the combination of the relative stability in the financial markets since the vote, the action from the BoE and indications of some additional flexibility in interpreting the balanced budget goals of the Conservative government all imply a concerted effort to create the support and stability the business world craves whilst the Brexit negotiations crank into gear.
‘We expect now a period of relative calm over the Summer whilst the business world waits for Q3 data, the US election and the Autumn statement which together will help paint a clearer picture of 2017. Based on the feedback from our clients at the moment the BoE forecast for 2017 looks fairly pessimistic. Time will tell.’