NVDA gained a massive 197% since our AI first added it in November - is it time to sell? 🤔Read more

UK rate cut is a question of when, not if, BoE's Pill says

Published 02/05/2024, 12:58 PM
Updated 02/05/2024, 01:40 PM
© Reuters. Chief Economist and Executive Director for Monetary Analysis and Research at the Bank of England, Huw Pill speaks to reporters in the Reuters' offices at Canary Wharf in London, Britain, September 5, 2023. REUTERS/Suzanne Plunkett/File Photo

By David Milliken

LONDON (Reuters) -Bank of England (BoE) Chief Economist Huw Pill said on Monday that the question now for most of the central bank's policymakers was when it would be appropriate to begin to cut interest rates, not if.

Pill was among the six members of the bank's Monetary Policy Committee who voted last week to keep interest rates at 5.25%, while two officials voted for a hike and one voted for a cut.

Governor Andrew Bailey said after the decision that inflation was "moving in the right direction" and the BoE ditched a previous warning that rates could rise again, saying instead that borrowing costs would be kept "under review".

Pill, speaking at an online forum hosted by the BoE, said he and other officials believed there needed to be further signs that underlying drivers of inflation, such as wages and services prices, were weakening before voting for lower rates.

"The debate has a bit shifted toward asking: 'when is the point when we will have seen enough accumulated evidence that ... we can begin to reduce the level of restriction in monetary policy in the economy and start to cut Bank Rate?'," Pill said.

© Reuters. Chief Economist and Executive Director for Monetary Analysis and Research at the Bank of England, Huw Pill speaks to reporters in the Reuters' offices at Canary Wharf in London, Britain, September 5, 2023. REUTERS/Suzanne Plunkett/File Photo

"It is the focus on 'when' rather than 'if' that has been what the Governor has been trying to focus on," Pill added.

On Friday Pill said he thought a rate was "still some way off".

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.