BoE Chief Economist Huw Pill said yesterday, “I do have high degree of confidence (about getting inflation to target) because we know what we’re going to do. We’ve done a lot to achieve it, we’re prepared to do more as necessary to ensure that we achieve it sustainably.”
He also said the BoE had to “guard against doing too much” given the typical 18-month lag for rate hikes to impact the economy. “We are reaching the point where those types of concerns are in the forefront of our minds,” he said. “But if you ask me where we are at the moment, I think we are still more concerned about the potential persistence of inflation.”
Inflation pressure in the labor market “probably tilts us to saying we haven’t quite got to the point where we’re confident to engage in a discussion of a turning point in rates.”
