BoE chief economist Huw Pill dents hopes for a rate cut due to 'persistent' inflation

A case of 'when rather than if'

The Bank of England’s chief economist Huw Pill has dashed hopes for an August rate cut, pointing to “an uncomfortable strength" in underlying inflation dynamics.

Pill highlighted the stickiness of services inflation and continued wage growth as the key drivers of these inflationary winds. In a speech at Asia House in London on Wednesday (10 July), the chief economist admitted that the UK central bank had made "substantial progress" in its attempts to reduce inflation. Following inflation reaching the BoE's official target of 2% in May, Pill added an interest rate cut is still a question of "when rather than if" for the Monetary Policy Committee. BoE's Jonathan Haskel argues for rates hold amid 'tight and impaired' labour market However, ...