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BOE likely to raise rates further in 2027, Pill tells FT
Huw Pill said the bank may need to tighten again next month and keep raising rates as inflation is expected to near 5%.
- On Saturday, Bank of England Chief Economist Huw Pill told the Financial Times that the central bank will likely need to raise interest rates further in 2027 to combat inflation, exceeding the anticipated December increase.
- The US-Israeli conflict with Iran is driving inflation through second-round wage effects, Pill noted, adding he considers a near-term end to the conflict and falling energy prices to be a "very low probability."
- Markets currently price in 90 basis points of tightening, suggesting rates could reach 5%, while the BoE aims to return inflation to 2% over time despite expecting inflation to reach around 5% by mid-2027.
- Pill announced he will not seek a third term as chief economist when his tenure ends in September 2027, while supporting another quarter-point hike next month and stating, "The ability to be modest has diminished."
- Emphasizing that the central bank should have acted sooner, Pill warned that further rises are necessary to address risks from second-round effects. He stated, "My bias, for what it's worth, is that I worry about the inflationary impact.
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BOE likely to raise rates further in 2027, Pill tells FT
The Bank of England will probably need to raise interest rates further in 2027, over and above an increase at the next meeting in December, to combat inflation, Bank of England Chief Economist Huw Pill told the Financial Times in an interview published on Saturday.
·London, United Kingdom
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Total News Sources4
Leaning Left0Leaning Right0Center3Last UpdatedBias Distribution100% Center
Bias Distribution
- 100% of the sources are Center
100% Center
C 100%
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