Why does Lloyds CEO Charlie Nunn want interest rate cuts?

Charlie Nunn believes interest rate cuts are needed to stimulate the economy and boost confidence for investment.

What are the latest UK job figures?

Official figures show UK jobs were shed at the fastest pace in over five years in December 2025.

When will the Bank of England cut interest rates?

The Bank of England has cut rates since August 2025 and further reductions are expected in the coming months.

Home / Business and Economy / Lloyds Boss: Rate Cuts Needed for Economy

Lloyds Boss: Rate Cuts Needed for Economy

21 Jan

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Summary

Lloyds CEO urges interest rate cuts to stimulate economy.
UK jobs declined at fastest pace in over five years.
Inflation dropped to 3.2% in November 2025.

Lloyds Boss: Rate Cuts Needed for Economy

Charlie Nunn, the chief executive of Lloyds Banking Group, has stated that interest rate cuts are essential for stimulating the economy and enhancing confidence. Speaking at the World Economic Forum in Davos, Nunn indicated that rate reductions are anticipated in the coming months.

He believes these cuts will provide optimism for both households and businesses, encouraging increased investment and subsequent economic growth. This perspective emerges as official data from the Office for National Statistics shows a significant decline in employment, with 43,000 jobs lost in December 2025 alone.

The recent job losses mark the most substantial reduction since November 2020. Inflation, which previously fell from 3.6% in October 2025 to 3.2% in November 2025, is being closely watched for further decreases that could support a rate cut decision.