Bank economist pours cold water on four interest rate rise forecasts
Huw Pill, the Bank of England’s Chief Economist, says he is "sceptical" that there will be successive rate increases to 4.75%.
The Bank of England’s Chief Economist says it is unlikely interest rates will go up four times in a row, as has been predicted.
Huw Pill (pictured), who does support an increase in the Bank Rate from 3.75% to 4%, said he was “sceptical” about forecasts of successive rate rises, The Times reports.
The markets are reported to be factoring in four increases in the next year, which would take the rate up to 4.75%, and would put a hard brake on the property market.
Clear signal
Pill goes on to say why he has supported a rate hike in recent Bank Monetary Policy Committee (MPC) meetings.
“It would have been good to move early and influenced market expectations, and send a clearer signal we were active and agile,” he said. “I don’t think we have been in a good place.”
“Acting and being agile feels more comfortable to me. You are doing something you are controlling.”
Inflationary pressures
In the minutes of the last MPC meeting in September, he said: “Acting decisively now cuts through in a way that bolsters the clarity and effectiveness of policy choices, thereby heading off inflationary pressures rather having to reverse them once they become ingrained.”
The next MPC meeting announcement will be on 5th November, just after the Budget on 28th October, and then again in the week before Christmas.
