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

Partner Insight: Tariffs are here to stay. What's next for investors?

Partner Insight: Tariffs are here to stay. What's next for investors?

The current outlook for US tariffs is complex and their full impact on growth remains to be seen. Columbia Threadneedle Investments explores what advisers need to know, key events to keep top of mind and how to navigate the uncertainty.

Columbia Threadneedle Investments
clock 23 October 2025 • 5 min read
IFS: Reeves must plug £22bn fiscal hole to restore 'tiny' headroom

IFS: Reeves must plug £22bn fiscal hole to restore 'tiny' headroom

Think tank urges chancellor to avoid 'limping from one forecast to the next'

Linus Uhlig
clock 16 October 2025 • 2 min read
Why higher bond yields aren't causing a Mini-Budget meltdown

Why higher bond yields aren't causing a Mini-Budget meltdown

'One thing we know about Rachel Reeves is she will live or die by her fiscal rules'

Laith Khalaf
clock 07 October 2025 • 5 min read