UK interest rate could need further cut, BoE chief economist warns

Laura Miller
clock

UK interest rates could need to be cut further to support growth and return inflation to target, the Bank of England's chief economist has said.

In a speech entitled 'How low can you go?', Andrew Haldane said "there could be a need to loosen rather than tighten the monetary reins". Against a backdrop of low wage growth, subdued world growth and prices, and a strong sterling, Haldane said "the balance of risks to UK growth, and to UK inflation at the two-year horizon, is skewed squarely and significantly to the downside". "The case for raising UK interest rates in the current environment is, for me, some way from being made," he said. Haldane's comments appear to set him against the Bank's governor Mark Carney, who said in J...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Economics / Markets

Why the lead-up to the Budget may have been worse than the Budget itself

Why the lead-up to the Budget may have been worse than the Budget itself

What Rachel Reeves and Dr Evil have in common

Laith Khalaf
clock 13 November 2024 • 4 min read
Bank of England meets expectations with 25 basis point rate cut to 4.75%

Bank of England meets expectations with 25 basis point rate cut to 4.75%

'Continued progress' on disinflation

Valeria Martinez
clock 07 November 2024 • 2 min read
'Budget will be a reset for our economy' Reeves tells IMF colleagues

'Budget will be a reset for our economy' Reeves tells IMF colleagues

Autumn Budget on 30 October

Linus Uhlig
clock 24 October 2024 • 2 min read