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 Investment Week

  • Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
  • Get ahead of regulatory and technological changes affecting fund management
  • Important and breaking news stories selected by the editors delivered straight to your inbox each day
  • Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
  • Be the first to hear about our extensive events schedule and awards programmes

Join now

 

Already an Investment Week
member?

Login

More on Economics

European-focused investment grade and high yield credit have highest inflows since April 2020.

Fixed income dominates ETF flows in July

Accounted for $32.5bn

clock 08 August 2022 • 2 min read
Investors look away from energy intensive sectors such as chemicals, metals and manufacturing.

'An investor's worst nightmare': Energy rationing spells greater chaos for supply chains

Business confidence falls

clock 05 August 2022 • 5 min read
Bank of England governor Andrew Bailey

Bank of England gilt sales 'unlikely to upset markets too much'

Central bank raises rates to 1.75%

clock 04 August 2022 • 3 min read
Trustpilot