"It's always a question of a balance of risks. And you know, I have been on the side of saying maybe the balance of risks are more on the inflationary side than the disinflationary side. I think, through time, and also as markets reprice, that probably is changing. And personally, I'm more comfortable now than I was six, nine, 12 months ago,"
"We held interest rates at 4% today. Although we expect inflation to return to our 2% target, we're not out of the woods yet so any future cuts will need to be made gradually and carefully."
Huw Pill, Bank of England chief economist and MPC member, is more comfortable with the inflation outlook than six to twelve months ago. He previously viewed the balance of risks as skewed toward inflation, but through time and as markets reprice that balance is probably changing. Headline inflation held steady at 3.8% in August, nearly double the Bank's 2% target. The Bank left interest rates at 4% earlier this month. Governor Andrew Bailey noted that, while inflation is expected to return to 2%, any future rate cuts must be gradual and careful.
Read at London Business News | Londonlovesbusiness.com
Unable to calculate read time
Collection
[
|
...
]