One of the UK’s leading economists has called on the Bank of England (BoE) to implement an emergency interest rate rise of 1.5%.
In an interview with Sky News Charlie Bean, a former deputy governor of the BoE, said investors had started to lose confidence in the Government.
When asked what the Government could do to rectify the economic situation, Bean told Sky: “The ideal would be to get a Tardis and go back and undo the errors.”
He added that were he still with the BoE he would be calling on the Governor, Andrew Bailey, to raise rates immediately.
He said: “The evidence from many of these sorts of episodes across the world is that the secret is to go early and go big.
“So had the bank decided to have an emergency meeting, it would have needed to raise bank rate by at least I think 100 basis points (1%), or possibly 150 basis points (1.5%).
“Anything less than that would have been worse than not doing anything.”
