Redwood Bank reacts to base rate change

08 May 2025

Jessica Darrah, senior products manager (savings), said:

“Today’s decision by the Bank of England to lower the base rate is aimed at stimulating economic activity. For many SMEs and commercial landlords, lower interest rates can reduce the cost of finance, making it more attractive to invest, expand and hire. Cheaper borrowing may offer breathing space at a time when some sectors are navigating slowing demand and higher costs.

“However, a rate cut creates challenges for businesses and individuals relying on savings income. In a lower-rate environment, maintaining strong returns becomes more difficult, and careful financial planning is even more important.

“At Redwood Bank, we recognise both sides of this shift. Our approach remains centred on delivering competitive savings products to support investment returns, while offering flexible lending options that empower SMEs and landlords to seize growth opportunities.

”As the economy adjusts, Redwood Bank will continue to provide certainty, simplicity and expert understanding our customers rely on.”