Opposing the prospect of a larger-than-usual rate hike came Bank of England (BoE) chief economist Hugh Peel, who spoke of a “moderate rather than radical approach” to monetary policy.
In particular, as reported by Bloomberg, in his speech today, Peel showed that the bank will continue with quarterly increases of 25 basis points (0.25%), despite the fact that four members of its committee had voted to increase by 50 points this year. month.
Peel, who was one of five members to vote in favor of the 25-point increase. (at 0.5%), he said, expressing concern that “major monetary policy steps will consolidate the market’s assessment that central banks are moving either with their feet on the gas or with their feet on the brakes.”
“And such assessments can determine the reality,” he warned, explaining that “if such fluctuations in market sentiment and expectations are able to guide interest rates, then the implementation of monetary policy will be in jeopardy.”
Despite his position, however, Hugh Peel did not rule out the possibility of a larger increase, saying that “there is a prospect of more happening in the coming months.”
Source: Capital
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