BoE's Haskel: Rate cuts will not happen 'anytime soon'

Productivity growth remains 'in the doldrums'

Elliot Gulliver-Needham
clock • 1 min read

The Bank of England’s Jonathan Haskel has warned that interest rates will not be cut “anytime soon” due to the tightness of the labour market.

In a speech earlier this week (28 November), the member of the Bank's Monetary Policy Committee since 2018 said interest rates need to be "held higher and longer than many are expecting," as productivity growth remained "in the doldrums". "The labour market is still historically tight. At current rates of change, it would take at least a year to fall back to average pre-pandemic tightness," he said. Haskel is seen as one of the MPC's most hawkish members, having been one of only three members to vote for a 50 basis point rise in August and one of three to vote for a 25 basis point ris...

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