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Pill Stresses More Work To Do In Fight Against Inflation

BOE
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No real change in tone in the initial remarks from BoE chief economist Pill, as we suggested would be the case.

  • Pill stresses that although the Bank is making good progress on returning inflation to target, there is still work to do. He also warns that negative CPI base effects from energy prices are about to be removed.
  • Pill previously pointed to the need to focus on underlying CPI measures, warning of the need to avoid being “seduced” by headline inflation metrics.
  • That leaves gilts and SONIA markets roughly in line with levels flagged earlier.
  • BoE-dated OIS prices near 50/50 odds of a June cut and 55.5bp of easing through year end.
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No real change in tone in the initial remarks from BoE chief economist Pill, as we suggested would be the case.

  • Pill stresses that although the Bank is making good progress on returning inflation to target, there is still work to do. He also warns that negative CPI base effects from energy prices are about to be removed.
  • Pill previously pointed to the need to focus on underlying CPI measures, warning of the need to avoid being “seduced” by headline inflation metrics.
  • That leaves gilts and SONIA markets roughly in line with levels flagged earlier.
  • BoE-dated OIS prices near 50/50 odds of a June cut and 55.5bp of easing through year end.