Bank of England chief economist Huw Pill said on Friday that he thinks the BoE's policymakers shouldn’t promise that rates are going to move down further in the very short term.
The official noted that Britain has made progress on easing inflation but stressed that it’s not yet job done, admitting that the UK still sees persistent price pressures across the services sector. In addition, he noted that evidence of second-round inflationary effects is observed in corporate behaviour on setting prices, wages and margins. In Pill's opinion, these facts suggest that there may be a need to keep some restrictions in the system somewhat longer from the monetary policy side.