Bank of England economist calls for interest rate cut
Andy Haldane says low inflation and slower growth must be countered with lower interest rates
ANKARA
The Bank of England (BoE) may cut interest rates at the next meeting of its Monetary Policy Committee on Oct. 8, its Chief Economist Andy Haldane said on Friday.
At its last meeting on Sept. 10, the Bank held interest rates at near-zero levels, as it has for more than six years. Monetary Policy Committee members voted 8-1 in favor of not revising key interest rates.
BoE governor Mark Carney said on Aug. 29, however, that a rate increase should be expected near the end of the year.
However chief economist Haldane, during a speech in Northern Ireland said that a remedy had to be found for low inflation and low growth, as the crisis in emerging economies would affect the British economy.
Haldane noted weaker manufacturing and construction output as a sign of slower growth for the U.K., and he said that meant inflation would not come up from its low level at 0.25 percent.
The Federal Reserve decided to hold interest rates at its meeting on Thursday.
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