Bank of England’s Chief Economist Huw Pill said the monetary policy needs to be restrictive in order to bring inflation back to the target.
At the Institute of Chartered Accountants in England and Wales on Thursday, Pill said “Having established monetary policy in restrictive territory it is not the case that we need to raise rates in order to bear down on inflation.”
“Sustaining rates at their current level will continue to bear down inflation,” said Pill.
Markets anticipate first rate cut in August 2024. Pill said “It does not seem totally unreasonable”.
At the October meeting, the <a href=https://www.rttnews.com/3402297/hawkish-boe-holds-rate-at-15-year-high.aspx target=_blank >BoE</a> had left the bank rate unchanged at a 15-year high of 5.25 percent. The rate was lifted by a cumulative 515 basis points since December 2021.