Bank of England chief economist says interest rates likely to stay low until after mid-2015

Economic Indicators Associated Press

The Bank of England's chief economist is signaling that interest rates could remain at record lows for longer than he predicted even three months ago.

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Andrew Haldane told business leaders Friday that even though Britain's economic growth rate is the envy of many G-7 nations, growth in real wages has been in negative territory for all but three of the past 74 months.

Haldane says the economy is "writhing in both agony and ecstasy. It is twin peaked."

Haldane says he's gloomier because of weakening global growth, increased geopolitical and financial risks, and weaker inflationary pressures.

Howard Archer, chief economist of IHS, says the comments will bolster the view that the Bank of England won't raise its benchmark interest rate until after the middle of next year.