Expert urges interest rate cut now
BRITAIN needs an immediate cut in interest rates to avoid a prolonged recession, one of the country’s monetary policymakers warned today.
David Blanchflower, who helps set interest rates on the Bank of England’s Monetary Policy Committee (MPC), said the country risked at least a year of negative growth unless monetary policy was relaxed.
Mr Blanchflower, who has consistently voted for interest rate cuts at this year’s monthly MPC meetings, said: “I think we are going into recession and we are going into one right now.” The economics professor is urging fellow MPC members, who this month kept interest rates at 5%, to look through “the short term blip upward in inflation” and focus on the medium-term picture.
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