The Bank of England’s chief economist has warned that an interest rates rise could damage Britain’s fragile economic recovery as he placed the prospect of a cut firmly back on the table.
Once again revealing his dovish colours and breaking away from his colleagues on the monetary policy committee (MPC), Andy Haldane will use a speech today to say that the prospect of a rise in rates, which have been at a record low of 0.5 per cent since 2009, is just as likely as a cut as he lays out his argument for why consumers and businesses would struggle with an increase.
“A rate rise ‘however modest’ would be a further example of bad news to already cautious consumers: a policy of early lift-off