Speaking at a forum today, BoE Chief Economist Huw Pill asserted, “We still have some work to do in order to get back to 2%.”
“And we probably have some work to do to ensure that when we get it back to 2%, we do so in a way that is sustainable,” he added.
Pill voiced concerns over interpreting the recent decline in headline inflation as a success. He pointed out that the declining rate is “certainly not sufficient” to claim that their inflationary objectives have been met.
Emphasizing the need for a consistent strategy, he said, “If we have a persistent component of inflation, it seems natural to me that we have a persistent monetary response to it.”
“It is important that we do not declare victory prematurely just because movements which are relatively mechanical in headline inflation are working their way through.”