Bank of England policymaker says no rush to cut interest rates – business live

MPC member Martin Weale says Bank doesn’t need to ‘nurse’ the markets by slashing borrowing costs next month

• Latest: Weale argues against August rate cut
• Warns that Brexit will make us poorer
• Deloitte: UK gloom deeper than after Lehman Brothers collapse
• UK government backs ARM takeover

1.34pm BST

A quick recap.

One of the Bank of England’s top policymakers has dampened expectations that UK interest rates will be slashed to fresh record lows next month.

Related: Need for interest rate cut called into question by Bank of England expert

Related: ARM Holdings to be sold to Japan’s SoftBank for £24bn

Over time, interest rates will need to be reduced significantly in order to stimulate demand in the economy. But at the same time, this will reduce the appeal of the lira as a higher yielding currency for foreign investors. So whichever way you look at it, the outlook for the Lira looks dire unfortunately.

1.20pm BST

Unsurprisingly, the Adam Smith Institute thinks overseas firms shouldn’t be blocked from buying UK ones.

Their head of research, Ben Southwood, says it would be a blunder to consider blocking deals such as the SoftBank/ARM takeover.

“Vetting all foreign bids for British firms represents yet another step on the risky road to ‘Italyification’ of the UK economy, where inefficient national champions are propped up and those putting money into our growth are scrutinised based on their national origin.

“The fact you can later sell your business to a wider pool of investors—and attract capital from everywhere in the world—is a major driver behind British investment. It is also the foundation of Britain’s world-beating finance industry, which provides an outsized portion of UK output, and UK tax revenues.

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