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.
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