Next Bank of England move may be rate cut, not hike – Haldane

Reuters, Ana Nicolaci Da Costa – 18/09/2015

The Bank of England’s next move may be to cut interest rates rather than raise them, because of the risk of persistent low inflation and an emerging market crisis that could hurt world growth, its chief economist Andy Haldane said on Friday. Recent data suggested Britain’s economy would slow in the second half of the year and inflation might remain too low, while emerging market troubles could drag on growth, he said. Haldane’s speech comes less than a day after the U.S. Federal Reserve held off from raising interest rates, blaming weaknesses in the global economy that concern the BoE too.

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