Bank of England Chief Economist Huw Pill said he is more sceptical about market pricing of four quarter-point increases to borrowing costs over the next year. Pill voted for a hike in September, but a majority of the Monetary Policy Committee preferred no change.
Bank of England Chief Economist Huw Pill, who voted to raise rates, said on Wednesday he was more sceptical about market pricing of four quarter-point increases to BoE borrowing costs over the next year. He spoke at an event organised by Citi on the sidelines of the semi-annual International Monetary Fund meetings in Bangkok.
Pill questions the four-hike path
Pill questioned whether the BoE would need to follow market pricing to four 25 basis-point hikes. According to Reuters: "I would be a little bit more sceptical".
Pill also said it is important for the bank to get itself in the right position, that there is some work to do there, and that this is probably increasingly obvious now. He then asked whether four hikes over the next year would be appropriate.
A divided committee in September
Pill's stance sits within a split at the central bank. He and two other MPC members voted to raise interest rates in September, while a majority including Governor Andrew Bailey preferred no change.
That majority preferred no change pending clearer signs of the impact of the Iran war on inflation. On Tuesday, Bailey repeated his view that pressure on broader inflation in the UK from the energy shock had so far been subdued, though he said it gets harder the longer the situation goes on.
Source: Investing.com (Reuters)
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