BoE moving closer to rate cuts but inflation pressures strong, Pill says
2024.07.10 10:15
LONDON (Reuters) – Bank of England Chief Economist Huw Pill said on Wednesday the central bank was moving closer to cutting interest rates but services price inflation and wage growth remained uncomfortably strong.
“At annual rates still not far from 6%, annual services price inflation and wage growth continue to point to an uncomfortable strength in those underlying inflation dynamics,” Pill told an industry event in London.
“But the latest data also remains consistent with the view that these inflationary pressures have now been contained, and may be starting to revert towards levels that are more consistent with the achievement of the inflation target.”
Pill said the BoE’s “when-rather-than-if” characterisation of prospective Bank Rate cuts still seemed appropriate.
Pill, who is seen as a centrist on the Monetary Policy Committee, voted with the majority of his colleagues last month to keep interest rates at a 16-year high of 5.25%.
