British executives have urged the Bank of England to cut interest rates as soon as possible to boost the economy as “depressed” confidence sank to a four-year low.

The Institute of Directors’ (IoD) latest economic confidence index, which measures bosses’ optimism about the UK economy over the year ahead, sank to its lowest level since August in December.

The reading of minus 28, down from minus 21 in November, was close to the 2023 low point of minus 30 recorded in June.

It showed bosses ended 2023 in a “relatively depressed place,” according to IoD director of policy Roger Barker.

He said: “In the coming months, the Bank of England will be considering its next step in term of interest rates. 

“Based on the evidence of this survey, an early cut in interest rates would be justified in terms of helping to kick-start business confidence.”

Money markets are betting that the first interest rate cut by the Bank of England will happen by May.

Read the latest updates below.