BOE Chief Economist Huw Pill says the MPC's new policy statement reflects both a divided committee and his willingness to hike faster than before
Bank of England Chief Economist Huw Pill said Wednesday he was willing to back more rapid rate hikes than the string of 25 basis point increases imposed so far, if he felt data showed it necessary, citing the Monetary Policy Committee's new policy statement,
Pill, speaking at King's College Business School, said he was skeptical about forward guidance but the new policy statement covered the range of views on the MPC, with its openness on whether more tightening will occur and the line that the MPC ‘if necessary (will) act forcefully" in response to signs of more persistent inflation.
"The statement reflects both my willingness to adopt a faster pace of tightening than implemented thus far in this tightening cycle, while simultaneously emphasising the conditionality of any such change," he said. He noted that there has been no unanimity of views on the MPC, and that any conventional forward guidance would be misleading.