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The Guardian - UK
The Guardian - UK
Business
Richard Partington Economics correspondent

Bank of England ‘risks worsening UK recession if no interest rate cuts soon’

A tourists shelters from the rain under an union jack umbrella near the Bank of England in the City of London
Bank of England policymakers have warned the UK faces inflationary risks from a tight jobs market and rising prices in the services sector of the economy. Photograph: Isabel Infantes/Reuters

The Bank of England risks making the UK’s recession worse unless it cuts interest rates soon to ease the pressure on households amid the cost of living crisis, its former chief economist has warned.

Andy Haldane, who had been a leading advocate of raising interest rates before leaving the central bank in 2021, said there was a danger that the Bank could “crush the economy” by keeping borrowing costs at the highest level in 16 years.

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