Ex-BoE chief economist Haldane: Bank credibility under threat if rates not cut soon - reports

Risk of deeper recession

Former Bank of England chief economist Andy Haldane has said the central bank may risk creating a deeper recession for the UK, if its monetary policy is not loosened soon.

Speaking to Bloomberg's UK Politics podcast, he said the BoE's credibility is under threat if it does not pivot on interest rates. Haldane, who was chief economist between 2014 and 2021 and is now CEO of the Royal Society of Arts, argued the UK is still "looking at best, at a year of anaemic growth", citing risks on the downside as well. UK enters technical recession as economy shrinks 0.3% in Q4 2023 He said there was a risk the BoE could worsen the UK's recession unless it started loosening its monetary policy, claiming that is where the "balance of risks lies". "For me, the c...