Recruiters have cautiously welcomed a 2% cut in interest rates. Yesterday, the Bank of England cut rates by 1% to 2%, its lowest level since 1951.

Gail Kenny, managing director at travel recruiter Gail Kenny Executive Search, says: “The cut in interest rates has not affected our approach as a business.

“There are a number of reasons for this. Firstly it was widely anticipated, and while it is appreciated, on its own it is not going to have a significant impact on the economy. Access to credit is now a far bigger issue as will be unemployment which is set to rise rapidly.”

Mark Norris, chief executive at hospitality recruiter Profile, says: “My immediate thoughts on the cut in rates is the positive news for all of our team here in London, many of whom have mortgages and have been under increasing pressure from the rising cost of living.

“From a business point of view, anything that can help to relieve the current uncertainly and build confidence again in the UK is very welcome. Hotels and restaurants need to have customers spending otherwise recruitment freezes will be unavoidable. Hopefully the Bank will also have another 0.5% cut before too long.”

Paul Farrer, chief executive at media recruiter pfj, says: “It is still too early to tell if the first cut made any difference. Until the banks free up credit for our customers confidence will remain low. I think it shows what a poor state the economy is in. Shame we don’t do public sector recruitment.”