Bank warned not to raise interest rates amid squeeze on households

Ex-MPC member David Blanchflower says there is ‘absolutely no basis’ for Bank of England to raise rates as early as November

The Bank of England has been warned against raising interest rates from as early as November, as a monthly Guardian analysis of the economy indicates pressure growing on households in the aftermath of the Brexit vote.

One year since Threadneedle Street’s emergency rate cut to 0.25% from 0.5% to avert a post-Brexit vote recession, the Guardian’s tracker of economic news paints a tougher picture for consumers. As the Bank prepares to reverse the cut with the first rate hike in a decade, senior economists have warned against raising the cost of borrowing for consumers pinched by low wage growth.

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