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Pill Favours 'Steady Hold' for Rates Policy

BOE

BoE Chief Economist Pill continues to speak from the SARB forum, notable comments include:

  • One option for policy is to hold rates steady for longer, I tend to favour that approach on rates
  • Still expecting a decline in UK inflation
  • Core inflation not yet showing a downward trend
  • Possibility of doing "too much" on rates in the UK
  • A lot of rate hikes are yet to impact the UK economy
Pill comments broadly infitting with his long-standing view, prompting little reaction in GBP/USD which holds close to the day's lowest levels. The trend outlook is bearish and short-term gains are considered corrective. Last week’s move lower resulted in a break of support at 1.2621, the Aug 14 low and 1.2591, the Jun 29 low. This confirms a resumption of the downtrend - the bear trigger is at 1.2548, the Aug 25 low.
MNI London Bureau | +44 203-865-3809 | edward.hardy@marketnews.com

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