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The burden of proof falls on those who don’t want to raise rates – Huw Pill

Bank of England Chief Economist Huw Pill It said on Friday that, based on recent data, the burden of proof on the bank had shifted to those who did not want to raise interest rates.

Market reaction

Currency markets do not appear to have reacted to the latest comments from Pill, who previously also alluded to the fact that he was not yet sure how he would vote at the December policy meeting.

There has been an interesting development in the short-term interest rate markets in the British pound (STIR) on Friday. The December 2021 sterling futures have recovered 5bp to 99.80 around 99.75, implying that the markets are revising their expected probability that the BoE will raise interest rates by 15bp in December (see chart below).

Source: Reuters Eikon

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