What will the Bank do?

The 1-minute read to get the money news you need with expert adviser commentary.

More stimulus?

Later today, the Bank of England will announce its plans for interest rates and stimulus measures, such as quantitative easing. It’s already cut interest rates to a record low 0.1% and set aside £771 billion pounds to buy up government bonds, as a way to soften the blow from the coronavirus recession.

Rent holiday extended

Struggling businesses won’t have to pay rent until 2021, with commercial evictions also banned for the rest of the year. It’s a relief for restaurants, but landlords have turned a little sour. The British Property Federation says it’s disappointed in the government’s decision, and that it’s bad news for the pensions and savings funds that own property on the high street.

Klarna under review

“Buy now, pay later” companies like Klarna are facing a crackdown* by the Financial Conduct Authority (FCA) as part of a review into unsecured credit. Klarna did very well over lockdown; its valuation has doubled this year to a whopping £8 billion. Campaigners are worried about vulnerable people going into debt and young people living beyond their means.

Oxford Street is changing

John Lewis is preparing to drastically reduce its flagship store, with plans to turn 3 floors into offices for rent. The staff-owned department store has struggled in recent months, with fewer visitors to its shops. Its iconic Oxford Street abode used to account for 10% of the company’s overall revenues - but now it’s fighting to survive.