Case for BoE rise some way off
The case for raising UK interest rates is "some way from being made," according to Bank of England Chief Economist Andy Haldane, who suggested rates may have to actually be cut.
Downside risks to inflation include the slowdown in emerging markets and the rise in the pound's exchange rate, he told Poradown Chamber of Commerce.
That's a concern when core inflation is subdued and unit-wage cost growth is still a percentage point below the level needed to reach the central bank's 2pc inflation target.
"With subdued world growth and prices, and a sharp appreciation of sterling whose effects in lowering imported prices have yet to fully pass through, I am not as confident as I would like that one percentage point of additional pickup will be forthcoming over the next two years," he said. "Against that backdrop, the case for raising UK interest rates in the current environment is some way [off].