In a speech, BoE chief economist Huw Pill said “the ground has now been prepared for policy action” with QE reaching its “natural end” next month. Incoming data supports the conclusion that “recovery is continuing” supply disruptions “create inflationary pressures”, and “labour market is tight”.
These developments were “sufficient” for Pill to support the MPC’s November steer, “should the incoming data continue to be consistent with the projections published in the committee’s latest Monetary Policy Report, it will be necessary over coming months to increase Bank Rate for the inflation target is to be achieved in a sustainable manner.”
