BoE’s Pill urges caution on interest rate cuts

Bank of England (BoE) Chief Economist Huw Pill told Reuters on Thursday that he “urges caution on interest rate cuts.”

Further comments

I do expect we can cut rates further.

Process of disinflation is not yet complete.

Wage deal intentions in the BoE survey show that job is not done.

US trade tariffs could have “quite substantial effects”.

Risk of 2nd-round effects from inflation “hump” in 2025 is less than just after covid.

Market reaction

GBP/USD holds higher ground near 1.2500 following these comments, adding 0.31% on the day.