BoE's Huw Pill: Interest rate cuts possible as 'reward' for lower inflation

In an online forum on Monday (5 February), Pill said key inflation indicators were not yet at a level that would allow policymakers to start easing policy, but argued he did not need to see underlying inflation reach its 2% target to begin cutting rates. "We do not need to see inflation get back to 2% on an underlying basis in order to begin to reduce the bank rate because we are at a restrictive level. We can reduce the bank rate a little bit and monetary policy would still be restrictive," he said. Bank of England holds at 5.25% and predicts higher rates into 2027 The chief econo...