The Bank of England’s chief economist has said it is essential interest rates stay at 5.25 percent to tame inflation.
Threadneedle Street kept its base rate at 5.25 percent last week and said rates will need to stay there for an extended period.
Huw Pill had said earlier this week that rate cuts could be possible in 2024, but his tone appeared to shift in remarks made on Thursday (November 9).
The BoE’s chief economist said on Monday that market pricing pointed towards a rate cut in August.
But he told the Institute of Chartered Accountants in England and Wales (ICAEW) today that there is “persistence” in Britain’s inflation.
Mr Pill, quoted by Reuters, said: “That’s what, for me, makes it crucial that the restrictive stance of monetary policy, as reflected in Bank Rate being at 5.25 percent, that that restrictive response also has to be persistent, in order to squeeze the inflationary situation out of the system.”
More to follow…
