<p>The Bank of England should cut interest rates now, rather than risk the British economy slowing to a point where the central bank can do little to help it, policymaker Jonathan Haskel said on Friday.</p>.<p>British economic growth and inflation risk being weaker than the central bank forecast last month, due to the danger of entrenched Brexit-related uncertainties and ongoing trade tensions between the United States and China, Haskel said.</p>.<p>He was one of two policymakers who voted for a rate cut in November and December, and his speech on Friday was the first since he broke with consensus on the BoE's Monetary Policy Committee.</p>.<p>"The UK economy is near the effective lower bound (ELB) for interest rates," Haskel said in his speech to the Resolution Foundation think tank in London.</p>.<p>"There is a case to be made for a monetary policy-maker to buy some insurance against falling to the ELB, as central banks are better equipped to combat above-target inflation than below-target inflation when interest rates are close to the ELB," he added.</p>.<p>The BoE kept its benchmark interest rate unchanged at 0.75% on Thursday, saying it wanted to wait and see how much the election victory of Prime Minister Boris Johnson last week would lift the uncertainty that has slowed the economy.</p>
<p>The Bank of England should cut interest rates now, rather than risk the British economy slowing to a point where the central bank can do little to help it, policymaker Jonathan Haskel said on Friday.</p>.<p>British economic growth and inflation risk being weaker than the central bank forecast last month, due to the danger of entrenched Brexit-related uncertainties and ongoing trade tensions between the United States and China, Haskel said.</p>.<p>He was one of two policymakers who voted for a rate cut in November and December, and his speech on Friday was the first since he broke with consensus on the BoE's Monetary Policy Committee.</p>.<p>"The UK economy is near the effective lower bound (ELB) for interest rates," Haskel said in his speech to the Resolution Foundation think tank in London.</p>.<p>"There is a case to be made for a monetary policy-maker to buy some insurance against falling to the ELB, as central banks are better equipped to combat above-target inflation than below-target inflation when interest rates are close to the ELB," he added.</p>.<p>The BoE kept its benchmark interest rate unchanged at 0.75% on Thursday, saying it wanted to wait and see how much the election victory of Prime Minister Boris Johnson last week would lift the uncertainty that has slowed the economy.</p>
