US EditionPublished • loading... • Updated
Bank of England’s Top Economist Calls for ‘More Cautious’ Interest Rate Cuts
Bank of England chief economist Huw Pill says inflation remains above target at nearly 4%, prompting a cautious approach to further interest rate cuts.
- On Friday, Huw Pill, chief economist at the Bank of England, urged the Monetary Policy Committee to adopt a more cautious pace in withdrawing monetary policy restriction and described keeping Bank Rate on hold as a `skip rather than a halt`.
- Persistent price pressures mean CPI inflation has been `stickier` than expected last year, with UK inflation at 3.8%, the highest among the Group of Seven, and last year's fiscal moves blamed for inflation.
- Market-Implied odds indicate the Bank of England cut rates four times since August last year to 4%, with Oxford Economics estimating inflation rose to 4% in September and markets assigning a 15 per cent chance of a cut at next month’s MPC meeting.
- They are widely expected to keep Bank Rate at 4% at next month's meeting, Pill said he `would expect further cuts` over the next year, with markets now eyeing February or March.
- Mr Pill warned the Monetary Policy Committee must stay alert to new shocks and guard against cutting rates too far or too fast to protect the 2% inflation target.
Insights by Ground AI
17 Articles
17 Articles
Bank England urged to NOT cut interest rates 'too or too fast' as top economist issues inflation warning
The Bank of England's top economist has cautioned against hasty reductions to borrowing costs while the consumer price index (CPI) rate of inflation remains stubbornly elevated
·London, United Kingdom
Read Full Article
Coverage Details
Total News Sources17
Leaning Left4Leaning Right3Center3Last UpdatedBias Distribution40% Left
Bias Distribution
- 40% of the sources lean Left
40% Left
L 40%
C 30%
R 30%
Factuality
To view factuality data please Upgrade to Premium
