BOE Chief Economist Says Rate Cut Could Be Here Sooner

The Bank of England may have to cut interest rates rather than raise them as its next move because of the risks of inflation remaining low and a crisis in emerging economies hurting world growth, BoE Chief Economist Andy Haldane said on Friday.

He said in a speech that softening employment figures and weakening surveys on manufacturing and construction output suggested growth in Britain was slowing in the second half of the year and inflation might not pick up as expected.

Furthermore, problems in emerging markets could drag on growth in Britain and the headwinds for those economies were unlikely to abate any time soon, Haldane added.

“The balance of risks to U.K. growth, and to U.K. inflation at the two-year horizon, is skewed squarely and significantly to the downside,” Haldane said.


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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza