Economist Justin Urquhart Stewart has criticised the latest interest rate decision as a "missed opportunity" to stimulate economic growth.
Speaking to GB News, he argued that current rates remain "too high" and fail to address the urgent need to get the economy moving.
"It's no surprise, but unfortunately another missed opportunity," Urquhart Stewart said, emphasising that the focus should be on supporting economic activity rather than solely concentrating on inflation concerns.
The Bank of England confirmed today that interest rates have been held at 4.25 per cent, just one day after it was announced that inflation figures flatlined in May.
Justin Urquhart Stewart said the Bank of England's interest rate decision was a \missed opportunity'
GB NEWS
Urquhart Stewart suggested that even a modest quarter percentage point reduction would have signalled a positive direction of travel for businesses and investors awaiting lower borrowing costs.
He highlighted the critical role of small businesses as the nation's primary employers and economic drivers, stressing that these enterprises have been "desperate to try and see a lower cost of money" to help them operate and expand.
He explained: "The most important thing we can try and get going at the moment, don't worry so much about inflation on those issues, is actually getting the economy moving and helping particularly the primary employer in this country and the primary driver in this country, smaller businesses.
"Smaller businesses have been desperate to try and see a lower cost of money and to encourage people that you to take that risk to set up new businesses, that's what we need to try and do."
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The Bank of England has held interest rates at 4.25 per cent
Issuing a warning for the "future direction" of the economy, he cautioned: "These rates are still too high. Another quarter percent would have been very little difference indeed, but at least it shows the direction of travel.
"We need the cost of money to get lower to get our economy moving properly."
The economist added: "What we do need to do is actually get to see some proper growth coming through, and you're not going to see that while these rates are still as high as they are at the moment."
Stewart argued that reduced borrowing costs would encourage entrepreneurs to take risks and establish new ventures.
Urquhart Stewart told GB News that we need the 'cost of money to get lower to get our economy moving properly'
GB News
Urquhart Stewart directed sharp criticism at the Government's recent economic policies, particularly their approach to taxation.
He argued that over the past year, authorities have "put the brakes on the economy with extra taxation, particularly on jobs."
The economist called for a reversal of these policies, suggesting that lower interest rates would be "a very good way of going about it."
He warned that without restored confidence and visible economic growth, potential business owners would continue to hold back from launching new ventures.
"What we hope can have to try and see is to get that vital word of confidence coming in," he concluded.
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