Remarks by BOE chief economist, Huw Pill
- Expects interest rates to remain at relatively low levels for the coming years
- Even as the impact of the COVID-19 pandemic recedes
- Current inflation strength looks to prove more lasting than anticipated originally
- BOE plans to unwind stock of asset purchases in the best way possible
Well, who would've thought that inflation would be more sticky and less transient considering how things have played out since the middle of the year. Central banks are still clinging on to hope more than anything else, so that's the key takeaway.
The BOE will likely have to deal with high inflation pressures with a rate hike or two but they will still be crossing their fingers and wishing every night that the root of the problem i.e. supply and capacity constraints will ease going into next year.
