With inflation having fallen fairly fast in Europe and the ECB having been the first to cut interest rates, surely it would seem fitting for the Bank of England to follow?

Inflation is definitely within its target range and nothing is worse than deflation, which currently might seem unlikely, but in actual fact it is very much a possibility in today’s world, simply as a result of high leverage having the propensity to cause a shortage of cash-flow during times of relatively high interest rates.

It appears that the US, like many other countries, has avoided a recession and that the UK quite frankly needs a bit of help to leap past the last one, as the effects of it can still be seen.

A general election and the potential change of government could also usurp the positive effect, which a decrease will definitely have. So, why would anyone not wish to invest in one now?

Later this year, the elections in the US could cause debt markets to remain versatile and with a recession likely to have been avoided there, those countries that are dependent on the US economic state are probably going to be in for a smoother run.

I might add that productivity initiatives are still lacking in some countries. However, it has never been the case that bureaucracy has equated to progress, so let’s not state the obvious. If interest rates are going to be cut, then why not decrease them before the uncertainty surrounding an election devalues their weight?

More certain times call for more certain measures. Inflation data is in arrears, for the most part rather dependent on what occurred more than six months ago and now, regardless, in its target range in the UK.

One must also bear in mind that an election can put a spanner in the works of progress in the sense that re-evaluation occurs both before and certainly after one, regardless of whether a change of government occurs. Uncertainty creates more uncertainty and decreasing interest rates at a time when spending is likely to be less and businesses and companies are likely to be subject to further risk may only have the effect of increasing them by 0.25bp. They are the lifeblood of the economy and a change of government will most likely stall business temporarily.

Furthermore, with the London Stock Exchange at close to a ten year high, the risk of destabilising the markets as a result of overconfidence in interest rates is significant.

So, why would the Bank of England wait until after the June call to opt for the first 0.25 basis point decrease?

Take zero chance on an excellent opportunity when it is on the doorstep.