BOE Chief Economist Warns UK Rate Cuts Are Still ‘Some Way Off’

==========

Bank of England Chief Economist Huw Pill stated that the first interest rate reduction in the UK is still 'some way off' despite indications that borrowing costs have likely peaked. Pill emphasized the need for policy to remain restrictive until inflation has been squeezed out of the system. The remarks tempered expectations of rapid rate cuts this year, causing investors to drop bets for a full percentage point of reductions by December. The BOE's forecasts indicate that lower borrowing costs will soon be necessary to prevent a recession, but Pill stated that those projections are conditional on inflation evolving as expected. The Monetary Policy Committee's recent vote to maintain the key rate at 5.25% was deeply divided, with one member wanting to lower rates to 5% and two voting to raise them to 5.5%. Pill expressed concern about weak activity in the UK, while Governor Andrew Bailey stated that the economy appeared to be picking up.

#BankOfEngland #UkInterestRates #HuwPill #MonetaryPolicyCommittee #Inflation #EconomicForecast

https://finance.yahoo.com/news/boe-chief-economist-warns-uk-144535823.html