BoE's Pill Highlights Inflation and Wage Setting Concerns

Bank of England (BoE) Chief Economist Huw Pill issued a stark warning on Tuesday about the looming threat of second-round inflation effects. He pointed to a concerning structural shift in how prices and wages are being set across the United Kingdom.

Monetary Policy May Need to Be More Persistent

Pill expressed worries over additional upside risks to inflation, suggesting that the BoE's approach to monetary policy might need to be more enduring to effectively reduce inflation to its target level. He referenced the central bank's latest monetary policy report, which anticipates a significant deceleration in inflation this year, as a clear validation of the market interest rate curve.