Bank of England may need to cut interest rates even if UK stays in EU

Underlying weakness in British economy may necessitate 'additional monetary stimulus', says policymaker Jan Vlieghe

A top Bank of England policymaker has warned that even if Britain votes to stay in the EU, underlying weakness in the economy could mean that more support is required from the Bank.

Jan Vlieghe, one of the nine policymakers who vote on interest rates, has previously floated the idea of them being cut below zero. Speaking on Thursday, he again raised the prospect of rates coming down further from their record low of 0.5%, when he said the economy could require "additional monetary stimulus" if it does not rebound after a remain vote in the EU referendum on 23 June.