Bank of England may need to loosen policy than tighten it, if downside risks materialize, the central bank’s chief economist Andrew Haldane said Friday.
“The balance of risks to UK growth, and to UK inflation at the two-year horizon, is skewed squarely and significantly to the downside,” Haldane said in a speech.
“Against that backdrop, the case for raising UK interest rates in the current environment is, for me, some way from being made.”
In contrast, other BoE policymakers, including Governor Mark Carney have signaled an interest rate hike, which is widely expected in early 2016.
“One reason not to do so is that, were the downside risks…to materialize, there could be a need to loosen rather than tighten the monetary reins as a next step to support UK growth and return inflation to target,” Haldane said.
The material has been provided by InstaForex Company – www.instaforex.com