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MNI BRIEF: More To Do To Control Domestic Inflation - BOE Pill

(MNI) London

The Bank of England still has more to do to control the underlying domestic price pressures, Chief Economist Huw Pill said Friday, although adding that the bank expects headline inflation to slow in 2023 as the base effects of the sharp increases in energy prices over the previous 12 months begin to drop out.

Pill told CNBC that the BOE has a fine line to tread between setting policy at a rate to ensure slowing the economy enough to fight inflation but not overtighten to send the economy into a deeper downturn that necessary.

On rates, Pill said he thought market pricing on Bank Rate had gone a little too far, saying he didn't think rates need to rise as much as markets were pricing. On Thursday, the Bank raised rates by 75 bps to 3.00%, the highest level since pre-financial crisis (MNI BOE WATCH: Further Hikes Likely, Market Peak Overblown).

MNI London Bureau | +44 203-865-3812 | les.commons@marketnews.com
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MNI London Bureau | +44 203-865-3812 | les.commons@marketnews.com
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