The Bank of England has cut interest rates to a record low of 0.25 per cent in a bid to stave off a post-Brexit vote recession.

Business Argus asked local business people what the move meant in general and also what it could mean for their businesses.

Gerald Davies, executive chairman, Kymin, Newport

The 'so called' recession is likely to be a mirage. The 'bad news' is largely made up of surveys of various groups of people who probably have an axe to grind about the result of the referendum. The truth, as we have experienced it at Kymin, is that, if anything, we are busier than before the referendum. We have seen no reduction in demand for our services. As to the Bank of England Governor’s package of measures, our view is that he had to do something if only to silence the Minnie-moaners who were determined to create a crisis where none existed. Indeed the growth figures for the second quarter 2016 were an improvement on the first quarter. The reduction in interest rates to 0.25 per cent will impact people who do not use our services. Large deposits in banks and building societies are merely subsidising the banks and their borrowing customers.

Clearly, the place to invest is even more into stocks and shares, especially high yielding major companies, where there is significant cover for the dividend payment. The average return on a FTSEE100 stock is nearly four per cent compared with the average Cash ISA return of 0.67 per cent. There is no need to panic.

David Spear, director, David Spear Commercials, Tredegar

Great news for business in that the interest rate has been cut to 0.25 per cent meaning that companies and consumers can borrow money at a lower rate and also pay off existing loans and mortgages quicker as capital will be repaid sooner due to the interest charged being reduced.

All our finance deals will be cut by at least 0.25 per cent in response to the recent cut in interest rates, meaning that there has never been a better time to borrow money to replace your existing vehicle and the monthly figure will be fixed at this low rate for the agreed term which can be up to 60 months. Two ways which I believe will help stave off a recession and boost the economy for business people and consumers is to cut the vat rate to 15 per cent, this will encourage people to spend as the product will cost less and business people will sell more products.

Another encouraging sign for Uk business’s next year is the cut to corporation tax to 19 per cent and 18 per cent in 2020.

Peter Lewis, managing director, Industrial Automation and Control Ltd, Newport

The Bank of England admits that bank rate changes take more than two years to make any difference, so no, none whatsoever in the short term.

Andy Wilkins, CEO,Plutus Health, Newport

In reality, while the benefits of a 0.25 per cent cut in base rate are minimal to the majority of businesses, the resulting reductions in savings rates could well cause hardship for pensioners, many of whom rely on income from savings to survive. Additionally, pensioners who are looking to downsize their properties are also likely to be hit hard as property values are widely expected to fall.

Liz Maher, Centurian VAT, Langstone, and president of South Wales Chamber of Commerce

This will be good news for any business looking to borrow in order to invest and grow their business. Outside of that, if it stimulates spending across the commercial sector and in the High Street, the increased activity will be welcome by all types of businesses. However, there must be a concern as the Bank of England has reduced its forecast for UK GDP growth for 2017 from 2.3 per cent to 0.8 per cent for 2017, and from 2.3 per cent to 1.8 per cent for 2018, this linked with the expectation of rising unemployment figures. A further boost to the GDP figures has been proven to occur if you cut the VAT rate and this idea is starting to attract commentary from economists, so this is perhaps something for the Autumn Statement from the new Chancellor. It needs more than an interest rate cut to stimulate long term economic growth. It would be great to see positive announcements on infrastructure projects across Wales to drive up employment opportunities in construction, and to see international profile building initiatives from Welsh Government to build the 'Wales' brand overseas and encourage both exports and inbound investment.