The Chief Economist of Bank of England, Huw Pill, said on Friday that two members of the Monetary Policy Committee (MPC) have not signed off on the new guidance on interest rates because they have felt enough has been done, Reuters reported. The statement published on Thursday suggested that rates could continue to rise to deal with inflation. At the same meeting, three members called for a 50 basis point hike instead of the 25 basis point increase.
Phill said he expects the UK economy to return to a trend growth rate even if this is weak. “I assume that the drop in the labor market participation rate will be quite persistent,” he said.
Earlier in the day, Pill said that “a key message that we hoped to send yesterday is that we face risks on both sides of the economic outlook.”
Source: Fx Street
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