Andy Haldane, the Bank of England’s chief economist and MPC member, has said the Bank could do more then cut rates in August as it looks to shore up the economy.
Haldane said the Bank needs to unleash fresh measures to deal with the Brexit fallout and is poised to act in the coming month.
He said: “In my personal view… a material easing of monetary policy is likely to be needed, as one part of a collective policy response aimed at helping protect the economy and jobs from a downturn.
“Given the scale of insurance required, a package of mutually complementary monetary policy easing measures is likely to be necessary. And this monetary response, if it is to buttress expectations and confidence, needs I think to be delivered promptly as well as muscularly.
“By promptly I mean next month, when the precise size and extent of the necessary stimulatory measures can be determined as part of the August Inflation Report round.
The MPC shocked the markets yesterday by maintaining interest rates at 0.5% despite it being widely expected to make a 0.25% cut.
Haldane made his comments in a speech in Port Talbot, Wales.