Bank of England may need to cut interest rates again, top economists warn

The Bank of England should raise interest rates tomorrow to combat inflation – but should also be prepared to cut them again if the economy needs more support in the autumn, top economists have warned. Mark Carney and the rest of the Monetary Policy Committee have a tricky decision to make as they assess the need for higher rates at a time of economic and political uncertainty. Amit Kara at the National Institute for Economic and Social Research (NIESR), said: “It is entirely possible that in three months’ time, because of the Brexit negotiations, or because of the trade wars, or for some other reason, it might look like the August rate increase was a mistake. They should stand ready to switch… Register for free to read this article, or log in to your Telegraph account Register Log in