In a speech today the Bank of England’s chief economist has suggested that interest rates may have to be cut to combat low inflation.
Andy Haldane, one of nine policymakers who vote on interest rates, said that unless the UK economy shows signs of growth in the second half of the year and the problems in emerging markets are abated then the current 0.5% rate may have to be cut.
This is at odds with the Bank’s governor Mark Carney who had indicated that rates might rise early next year.
Whilst highlighting a potential slowdown in the UK’s economic growth, this report does spell good news for people with mortgages and those hoping to secure new ones at the best deals.
Since talk started of an imminent rate rise many mortgage lenders have been pushing their rates up slightly. With this warning shot from Andy Haldane perhaps we will see them come down again.