BoE’s Pill views quarterly pace of rate cuts as ‘too rapid’

LONDON: Bank of England Chief Economist Huw Pill said on Tuesday he thought a quarterly pace of interest rate cuts had been too fast given the inflation outlook but his vote last week to keep borrowing costs on hold was likely to prove “a skip”.

“I would characterise my May vote as favouring a ‘skip’ within a continuing withdrawal of monetary policy restriction, rather than a halt to the process of withdrawal,” Pill said in a speech at Barclays in London.

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“It should not be seen as favouring a halt to - still less a reversal - of that withdrawal of restriction.”

Pill said the quarterly pace of rate cuts since mid-2024 had been “too rapid”.