High Street banks have "no excuse" not to pass on the Bank of England's cut to a record low 0.25% base interest rate to their customers, Governor Mark Carney has said.
Responding to a question from ITV News Economics Editor Noreena Hertz, Mr Carney also explained why he was "not a fan of negative interest rates".
The Bank of England's emergency £170 billion package of measures is a "timely, coherent and comprehensive" after Brexit, Governor Mark Carney has said.
Mr Carney said the package to prevent a recession met "the need for (economic) stimulus now" and is "appropriately sized" for the market shock of Britain's exit.
He said all the measures can be increased.
ITV News Business Editor Joel Hills said the Bank estimates growth will be 2.5% lower in the coming years because of Brexit.
No recession but growth will be 2.5% lower over next three years. @bankofengland assessment of economic price of vote to leave the EU.
The interest rates cut represents the biggest single downgrade to growth in 23 years and what happens next is "highly uncertain", ITV News Business Editor Joel Hills has said.
What happens next highly uncertain. Look at how wide range of Bank's GDP forecast is. Anything from boom to bust. https://t.co/zmf5i2INKi
Bank predicts another squeeze in living standards post-Brexit. Prices (CPI inflation) to rise faster than pay. https://t.co/4bcUSA3owq
Joel Hills added that the record-low inflation rate cut could benefit around half of Britain's 11 million households.
The Bank's action in a bid to prevent a recession comes after dire warnings from Governor Mark Carney on the economic impact on Brexit.Read the full story ›
The new rate impacts on mortgages, savings, business spending, pensions, travel money and investments. Find out how it could affect you...Read the full story ›
Senior economists believe the Bank is "almost certain" to slash rates to a new low in a bid to stop a recession following the Brexit vote.Read the full story ›
The Bank of England left interest rates unchanged at 0.5% today.Read the full story ›
At their last meeting in June, the MPC voted unanimously to maintain the Bank Rate at the historic low of 0.5%.Read the full story ›
ITV News' economics editor, Noreena Hertz, explores the Bank of England's announcement that they are to help boost lending by up to £150 billion.
In a speech on Tuesday, Mark Carney, Governor of the Bank of England warned of "challenging" time ahead following the Brexit vote.