Key facts
- Bank of England Chief Economist Huw Pill is skeptical of market pricing for four rate hikes in the next year.
- Pill previously voted in favor of raising interest rates.
- A majority on the BoE's Monetary Policy Committee preferred no rate change in September.
- Governor Andrew Bailey noted that energy shock impacts on inflation have been subdued but are becoming harder to ignore.
Bank of England Chief Economist Huw Pill indicated on Wednesday that he is more skeptical about the market's expectation of four quarter-point increases to borrowing costs over the next year. Pill, who had previously voted in favor of raising rates, questioned the necessity of such a move during an event in Bangkok on the sidelines of the International Monetary Fund's semi-annual meetings.
"Is it obvious that we will need to move, follow market pricing to four 25 basis-point hikes and so forth? So there, I would be a little bit more sceptical," Pill said. He added, "I think it is important we get ourselves in the right position. I think we have some work to do there. I think that is something that probably is increasingly obvious now. But is four hikes appropriate over the next year?"