Too Early to Start Slashing Interest Rates, Says Top Bank of England Official

Bank of England policymakers are widely expected to cut interest rates at next month’s meeting

by Szu Ping Chan and Peter Spence

The Bank of England should not cut interest rates until there is more evidence of the economic impact of the Brexit vote, according to a top policymaker.

Kristin Forbes said it was important to “keep calm and carry on” as she warned that there were “costs” as well as benefits to loosening monetary policy to support growth.

Writing in The Telegraph, Ms Forbes said financial markets had “stabilised” following an initial “panic”, while measures of consumer spending, which drives around two thirds of UK output, “do not suggest consumers are cutting back”.

“This is not a ‘Lehman moment’”, she said.

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