Interest rate cuts a long way off warns Bank of England expert | Personal Finance | Finance [Video]

A key member of the Bank of England’s Monetary Policy Committee (MPC) has thrown cold water on hopes of an imminent cut in interest rates.

City finance experts – and many Tory politicians – have put pressure on the Bank and its governor, Andrew Bailey, to cut the base rate from the current figure of 5.25 percent.

However, Jonathan Haskel, an external member of the MPC, which sets the rates, has stated that any cuts should be “a long way off”.

The Bank has used raised interest rates to take money out of the pockets of the nation, so cooling spending power and the ability of businesses to put up prices.

This has brought the headline rate of inflation down to 3.4 percent and triggered hopes it will hit the target of 2 percent in a few months.

Despite this, Mr Haskel, who is an external member of the MPC, argues it is too soon to declare that the …