There is a “serious risk” that economic growth will fall short of the Bank of England's forecast, forcing further interest rate cuts, Stephen Nickell, a member of its monetary policy committee, has told the Financial Times.

In an interview Mr Nickell said consumer expenditure growth was being curtailed by high oil prices, increasing slack in the labour market and high levels of household debt. There was also a a possibility that household savings rates would rise, denting consumption growth.