MNI BRIEF: Job On Inflation Not Done, Care Needed - BOE Pill

MNI (LONDON) - Domestic inflationary pressures are "still stubborn" and the job of getting inflation back sustainably to target is not yet done with disinflation continuing but at a slower pace than expected, entailing that restrictive monetary policy is still needed, Bank of England Chief Economist Huw Pill said at a Bank agents event.

Pill said that a key dividing question for the Monetary Policy Committee was how much they thought the latest data developments, with weaker activity and labour market easing, reflected demand or supply effects, with supply constraints suggesting policy easing would need to be slower. On one view "we need to move a little more carefully, a little more gradually," Pill said, whle stating that all MPC members agreed that rates had further to fall.