The Bank Of England Must Take "Prompt And Strong Action" To Cut Interest Rates.

Haldane, chief economist of the Bank of England, said Britain The central bank must act in a timely and strong way to boost confidence and stimulate the economy.

In his first speech after the British referendum chose to return to Europe, Haldane said that the central bank must timely put forward a set of loose monetary policy measures that can meet two aspects at the same time to catch up with the August 4th interest rate conference.

"If we want to support expectations and confidence, I think this monetary policy response needs to be timely and forceful. In time, I mean next month. He said.

The Bank of England failed to cut interest rates as expected on Thursday, which surprised the markets. Policymakers said that a more comprehensive package could be proposed when the new economic forecast is coming out next month.

Haldane did not mention any details of these measures.

Haldane said, Central Bank Ying Ning is too wrong to respond too positively, because interest rates in the UK are close to zero, and the outside world may question the effectiveness of monetary policy to boost demand.

"I would rather risk taking a knife to kill a chicken than a hero in the shawshank redemption." He said. Haldane said he expects the UK economy to slow down in the next few quarters, but it is not expected to collapse.

He added that enterprises are more likely to "make small adjustments" rather than "crazily deleting" recruiting and investment plans.

In addition, MPC, a member of the Bank of England's monetary policy committee, said he has seen initial signs that Britain needs to take other measures to deal with the euro retreat in addition to cutting interest rates. Economics The impact. At the policy meeting last week, fregg voted to cut interest rates.

Flig believes that Britain needs to cut interest rates, and that additional measures should be introduced next month to assist. At the July meeting of the Bank of England, fregg was the only member of the nine monetary policy committee of the bank to vote for cutting interest rates.

However, the Bank of England's monetary policy committee hinted that measures to boost the economy will be considered at the August session. Fregg also said the Bank of England should "ignore" the short term inflation caused by the weakness of the pound.

"Since the referendum, inflation expectations in the financial markets for the next few years have actually dropped from a lower level." Fregg said.

"I support immediate interest rate cuts, and in August, I took a package of more initiatives. The specific measures to be taken will be discussed in the next three weeks. Many economists predict that the Bank of England will restart its debt purchase plan and cut its interest rate at a record low of 0.5%.

"The exact impact of the referendum outcome on the economy is uncertain, but the general direction of the economic trend may be a period of growth decline and inflation rising due to weaker demand and supply and lower exchange rate." Fregg said.

"The preliminary signs from the business and consumer survey and the findings of the Bank of England's agency in various places support such assessment."