“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.
Source: https://www.fxstreet.com/news/boes-pill-we-do-not-need-to-raise-rates-to-bear-down-on-inflation-202311090915