From The BBC:
Two million people may be out of work by Christmas and house prices will fall by 30% if interest rates are not cut, a Bank of England policymaker has warned.
Professor David Blanchflower, a member of the Bank’s Monetary Policy Committee (MPC), told Reuters that big cuts in rates were needed to stave off a slump.
His unemployment forecast would mean 330,000 more people losing their jobs by the end of the year.
He urged the central bank not to be complacent and to act quickly.
Professor Blanchflower has been a lone voice at recent MPC meetings in urging a rate cut, while the majority of MPC members have been more concerned about inflation rising above the Bank’s 2% target.
However, it is highly unusual for a member of the MPC to speak out in public about interest rate policy.
Professor Charles Goodhart was one of the original appointees when the MPC was established in 1997. He told the BBC that he was not surprised that Professor Blanchflower had spoken out.