Interest rate cuts will remain “some way off” even if inflation falls below 2pc in the spring, the Bank of England’s chief economist has warned.
Huw Pill said policymakers must not feel a “false sense of security” if the inflation eases sharply in the near future from its present level of 4pc.
He said Britain’s economy remains weak but added that the evidence is not yet “conclusive” that price rises will not pick up again.
However, he indicated during a speech at Cardiff University that this will not mean interest rates have to stay at their 16-year highs of 5.25pc.
He said: “Maintaining restrictiveness does not necessarily mean leaving Bank Rate unchanged.”
His comments come after inflation soared to 41-year highs of 11.1pc in October 2022.
He added that although “we are now seeing early signs of a downward shift in the persistent component of inflation dynamics, those signs thus far remain tentative”.
Read the latest updates below.
https://news.google.com/rss/articles/CBMiaWh0dHBzOi8vd3d3LnRlbGVncmFwaC5jby51ay9idXNpbmVzcy8yMDI0LzAzLzAxL2Z0c2UtMTAwLW1hcmtldHMtbGF0ZXN0LW5ld3MtaG91c2UtcHJpY2UtaW5kZXgtaW5mbGF0aW9uL9IBAA?oc=5
2024-03-01 18:07:00Z
CBMiaWh0dHBzOi8vd3d3LnRlbGVncmFwaC5jby51ay9idXNpbmVzcy8yMDI0LzAzLzAxL2Z0c2UtMTAwLW1hcmtldHMtbGF0ZXN0LW5ld3MtaG91c2UtcHJpY2UtaW5kZXgtaW5mbGF0aW9uL9IBAA
Tidak ada komentar:
Posting Komentar