Lower interest rates will encourage investors back into equities

Following the Monetary Policy Committee's (MPC) decision to cut interest rates to three per cent, research from Barclays Stockbrokers reveals nearly half (47 per cent) of investors believe this will encourage equity investment, with equities now presenting better value. However, just over a third (34 per cent) of investors still believe cash is king.

The survey reveals one in five investors are not sure whether lower interest rates will encourage equity investment, with 11 per cent still unsure of how the changes will impact.

Barbara-Ann King, Head of Proposition at Barclays Stockbrokers, says: "Despite investors experiencing ongoing market volatility this year, it is encouraging to see they are continuing to see the value in equities. Throughout recent months we have seen our clients consistently capitalising on market conditions. While a third of investors still believe that cash is king, nearly half believe equities are now better value following interest rate falls."