BoE’s Pill cautions against overemphasis on June rate cut

BoE Chief Economist Huw Pill today advised against fixating on the possibility of an interest rate cut in the upcoming June meeting, describing such expectations as “probably a little bit ill-advised.”

Pill clarified that a rate reduction next month is not a “fait accompli,” tempering expectations that have been building around BoE’s short-term monetary policy trajectory.

Pill elaborated that the MPC has indeed signaled that the bank rate could be reduced, but only upon receiving sufficient evidence that the persistent components of inflation are on a clear downward path.