BOE Chief Economist Warns Against Doing Too Much on Rates

Huw Pill, chief economist at the Bank of England, following a Bloomberg Television interview in London, U.K., on Friday, Feb. 4, 2022. Pill said the benchmark lending rate in the U.K. will probably rise again in the coming months and a squeeze on living standards is probably unavoidable. , Bloomberg

Tom Rees, Bloomberg News

Feb 3, 2023

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(Bloomberg) -- Bank of England Chief Economist Huw Pill has said policy makers must “enguard against the possibility of doing too much” on interest rates, the latest sign that the quickest tightening cycle in three decades may be near an end.  

Pill said the central bank needs to have a “zen-like balance” in setting borrowing costs after the 10th consecutive hike pushed up its base rate to 4% on Thursday.

“It’s important that as I’ve said we do enough to attain our objective — return inflation to within target — but of course it’s also important that we enguard against the possibility of doing too much,” Pill said in an interview on Times Radio.

“The new language reflects that, flagging the need to keep that zen-like balance in our objective,” Pill said.

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