Hopes of interest rate cut dashed by Bank of England economist

finance
Created 7/10/2024
Updated 7/10/2024

Households hoping for a cut in interest rates faced disappointment as Huw Pill, the Bank of England's chief economist, indicated that inflation measures remain "uncomfortably high." Pill suggested he would vote to maintain the current borrowing rate of 5.25%, citing persistent wage growth and inflation in the services sector. His comments shifted market expectations, reducing the likelihood of a rate cut in the upcoming Monetary Policy Committee (MPC) meeting. Despite a recent drop in headline inflation, Pill emphasized the importance of monitoring labor market tightness, pay growth, and services price inflation. He warned that inflation could rise again due to a strong labor market and resilient wage growth, even as energy prices cool. Pill stressed the need for the Bank to remain vigilant in achieving its 2% inflation target over time.

Original Article


FNippet is a product of Green Verse Ltd - Registered in England, Company No. 15710200. Registered address: 5 Brayford Square, London, England, E1 0SG.

Copyright 2024 Fnippet™

Icons from Icônes

Theme from BlogiNote

Contact Us