UK interest rates may have to be cut, warns Bank of England chief economist

Andy Haldane suggests a rate cut may improve economic growth, given signs third phase of global financial crisis is looming

Interest rates in the UK may have to be cut further from their record low level, the Bank of England's chief economist has warned, as he highlighted signs that the global financial crisis is entering a third phase of turmoil.

Andy Haldane cited evidence of a slowdown on the domestic front and risks to the global economy from China, where an economic downturn has coincided with a stock market rout that has sent shockwaves through the world's markets.

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