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

UK inflation falls to 3% to give BoE 'green light' for rate cut

UK inflation falls to 3% to give BoE 'green light' for rate cut

In line with expectations

Michael Nelson
clock 18 February 2026 • 2 min read
Interest rate cuts expected after UK GDP edges up 0.1%

Interest rate cuts expected after UK GDP edges up 0.1%

Construction output lowest since 2021

Patrick Brusnahan
clock 12 February 2026 • 2 min read
Leaked Budget document viewed almost 25,000 times ahead of speech

Leaked Budget document viewed almost 25,000 times ahead of speech

Office for Budget Responsibility chair Richard Hughes quit as a result

Jenna Brown
clock 11 February 2026 • 2 min read