BoE’s Pill: Size and Pace of Further Easing Will Hinge on Inflation
Bank of England (BoE) Chief Economist Huw Pill spoke before lawmakers in Parliament, providing insights into the central bank's policy outlook.
Key Quotes from Huw Pill's Testimony:
- Vigilance to New Shocks: "We do need to remain vigilant to new shocks that might hurt path back to 2% inflation."
- Against Rapid Rate Cuts: "Evidence points against more rapid cuts in bank for me."
- Conditions for Further Cuts: "Further progress in disinflation would permit further cuts this year."
- Inflation Risk Dependent: "Size and pace of cuts will depend on how inflation risks evolve."
Summary Table of Key Points
| Topic | Quote |
|---|---|
| Inflation Target | Remain vigilant to new shocks affecting the 2% target. |
| Rate Cut Pace | Evidence suggests a cautious approach to further rate cuts. |
| Disinflation Progress | Further cuts are possible with continued disinflation. |
| Policy Adjustment | Size and pace of adjustments depend on inflation risks. |
These statements offer a glimpse into the BoE's data-dependent approach, emphasizing the importance of monitoring economic developments to guide future monetary policy decisions.
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