A 1.5% cut in interest rates will be a shot in the arm for the UK economy, a financial recruiter has claimed.

Following the Bank of England’s cut yesterday, Uzair Bawany told Recruiter that the move is likely to reduce charges for recruiters which will hopefully improve profit margins.

Bawany said: “From a candidate point of view, it will give a shot in the arm to the economy and boost people’s confidence in looking for jobs. We are starting to see candidates nervous about moving. We are finding it harder to recruit because candidates do not want to move.”

On figures from the International Monetary fund, which claims that Britain will be hit hardest by the global recession with the economy predicted to contract by 1.3% in 2009, Bawany was equally bullish.

“In terms of the IMF report, they are being extremely negative on the UK. I do not buy that. I think that everyone is aware where we are. They accept that some people will lose their jobs but they will retrain. People are taking lower salaries to move. The UK workforce is extremely flexible. I think we are better placed than the rest of Europe to come out of this.”