The Bank of England’s chief economist warned that joblessness could rise
by Peter Spence, Economics Correspondent
Telegraph.co.uk
Policymakers will need to deliver a “collective response” in the wake of the Brexit vote, including fresh central bank stimulus, the Bank of England’s chief economist has warned, in his first public comments on the matter since last month’s referendum.
Andy Haldane said that the vote had generated a “heady cocktail” of uncertainty about the economy, policy and politics.
In the text of a speech given in Port Talbot, south Wales, and updated since the Bank’s decision to hold interest rates this month, Mr Haldane recommended that the Bank respond “promptly as well as muscularly” to help “protect the economy and jobs from a downturn”.
The economist clarified that by “promptly, I mean next month”. Mr Haldane was one of eight members of the nine-strong monetary policy committee (MPC) to vote against central bank action being taken this month. Only Gertjan Vlieghe, the most recent appointee to the committee, voted for interest rate cuts of a quarter of a percentage point this July.