BoE’s Pill: Gas price increase is a big shock for the UK economy

Dhwani Mehta FXStreet

Bank of England (BoE) Chief Economist Huw Pill is speaking at a panel discussion at the UBS European Conference titled "Global monetary policy challenges," in London.

Key quotes

Gas price increase is a big shock for the UK economy.

Danger of self-fulfilling dynamics in wage-cost nexus.

We cannot declare victory against second round effects, but we are entering recession.

We have tried to re-anchor expectations, give more realistic view of where bank rate is heading.

There is more to do, we need to raise rates to tighten monetary policy.

We are not going to be moving at a pre-defined pace at every meeting.

At some point, we need to think about broader economic outlook.

Should not put housing market on a pedestal as an economic driver.

Market reaction

GBPUSD is reversing from daily lows of 1.1444 on Pill’s remarks, currently trading at 1.1458, but still down 0.47% on the day.

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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