Tuesday 21 October 2014

Bank OF England Says Keep Interest Rates Low For Now

Interest rates should remain low to avoid long-term economic stagnation, the chief economist at the Bank of England has said.

Global markets have tumbled this week, with investors disconcerted at the lack of growth in Europe and especially Greece, the impact of Ebola, and worrying economic data from China and the US.

Previously, UK interest rates had been expected to rise early next year.

Andrew Haldane said in a speech he was downbeat over the UK economy because of weaker global growth, low wage growth and financial and political risks.

He said there was still plenty of reasons to be cheerful. Growth is set to be the fastest of any major economy this year and inflation and borrowing costs are low, he said.

Source: www.bbc.co.uk/business

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