Bank of England chief economist Andy Haldane wants "muscular" easing to help economy post-Brexit vote

Jessica Morris
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The BoE suprised markets by holding interest rates yesterday (Source: Getty)

The Bank of England's chief economist has said it must act "promptly as well as muscularly" to counteract the effects of Britain's vote to leave the European Union.

In a speech delivered a week after the EU referendum, Andy Haldane said that Threadneedle Street should ease monetary policy to protect the economy and jobs.

Read more: How 8 City types reacted to today's MPC's interest rate inaction

He added that the central bank must create a potent package of monetary policy tools ahead of the next rate-setting meeting on 4 August.

The speech was made two weeks before rate-setters surprised markets by failing to cut interest rates below the record low 0.5 per cent yesterday.

"Given the scale of insurance required, a package of mutually-complementary monetary policy easing measures is likely to be necessary," he said.

Read more: Pound surges as Bank of England maintains UK interest rate

"And this monetary response, if it is to buttress expectations and confidence, needs I think to be delivered promptly as well as muscularly."

"By promptly I mean next month, when the precise size and extent of the necessary stimulatory measures can be determined as part of the August Inflation Report round."

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