BoE chief economist Huw Pill warns cutting UK interest rates too quickly has 'upside risks'

MPC voted five to four to cut rates

Patrick Brusnahan
clock • 2 min read

Bank of England's chief economist, Huw Pill, said he remains worried over the “upside risks” to hitting the inflation target, after he voted against cutting interest rates earlier this month.

In a speech held at a Barclays briefing session, Pill said: "My dissenting vote stems from a concern that the pace of withdrawal of monetary policy restriction since last summer – quarterly cuts of 25bp – is too rapid given the balance of risks to price stability we face. "This is in line with my preference for ‘cautious and gradual' cuts in bank rate expressed over the past twelve months." BoE's Mann defends restrictive monetary policy as 'somebody has got to pay for volatility' He worried that "structural changes in the price and wage setting behaviour" have made inflation persis...

To continue reading this article...

Join Investment Week for free

  • Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
  • Get ahead of regulatory and technological changes affecting fund management
  • Important and breaking news stories selected by the editors delivered straight to your inbox each day
  • Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
  • Be the first to hear about our extensive events schedule and awards programmes

Join now

 

Already an Investment Week
member?

Login

More on Economics

UK employment falls to 13-year low despite positive services output

UK employment falls to 13-year low despite positive services output

BDO Employment index

Cristian Angeloni
clock 07 July 2025 • 1 min read
Trump returns to tariff threats as 9 July deadline approaches

Trump returns to tariff threats as 9 July deadline approaches

EU and BRICS at risk

Linus Uhlig
clock 07 July 2025 • 1 min read
Early Powell departure could be an 'unexpected gift' for EMs

Early Powell departure could be an 'unexpected gift' for EMs

Trump claims he will replace chair sooner

Eve Maddock-Jones
clock 01 July 2025 • 3 min read
Trustpilot