BoE’s Pill: We do not need to raise rates to bear down on inflation

Dhwani Mehta FXStreet

“We do not need to raise rates to bear down on inflation,” Bank of England (BoE) Chief Economist Huw Pill said in a presentation to the Institute of Chartered Accountants in England and Wales (ICAEW) on Thursday.

Further comments

Inflation remains much too high.

We need to deliver the restrictiveness of monetary policy embodied in BoE forecasts for falling inflation.

Maintaining restrictive stance of monetary policy key to meeting inflation target.

Restrictive monetary policy needed to weigh against inflation persistence.

No sign yet of a decisive turn in domestically driven services price inflation.

We need a persistent level of restrictive monetary policy over an extended period

If economic situation changes, we will need to change policy, BoE does not make promises on interest rates.

We need to mobilize inactive pool of labour in the UK.

Supply capacity of the UK economy appears to be weakening.

Slowing growth does not appear to be reducing inflation or firms' pricing power.

Market reaction

GBP/USD is paying a blind eye to the above comments from the BoE policymaker Pill. The pair is currently trading at 1.2294, up 0.13% 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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