BoE Chief Economist Huw Pill said today, “we will do what we need to do to get inflation back to target. And at least in my view, that will require further tightening of monetary policy over the coming months.”
“When we assess inflation pressure, we need to take into account the exchange rate,” he added. “We see ourselves as steering a narrow path between persistent inflation pressure and recession.”
“Terms of trade shock means UK will be poorer, UK must decide how that reduction in income will be distributed.”
