Bank of England's Pill says he's sceptical about market pricing four rate hikes

Bank of England's Huw Pill Questions Need for Four Rate Hikes Amid Inflation Risks

Bank of England Rate Hike Debate and Inflation Concerns

Huw Pill's Scepticism on Market Pricing

Oct 14 (Reuters) - Bank of England Chief Economist Huw Pill, who had voted in favour of raising rates, said on Wednesday he was more sceptical about market pricing of four quarter-point increases to borrowing costs by the BoE over the next year.

Comments from Citi Event

"Is it obvious that we will need to move, follow market pricing to four 25 basis-point hikes and so forth? So there, I would be a little bit more sceptical," Pill said during an event organised by Citi on the sidelines of the semi-annual meetings of the International Monetary Fund in Bangkok.

Positioning and Policy Considerations

"I think it is important we get ourselves in the right position. I think we have some work to do there. I think that is something that probably is increasingly obvious now. But is four hikes appropriate over the next year?"

Monetary Policy Committee's Diverging Views

While Pill and two other Monetary Policy Committee members voted to raise interest rates in September, a majority on the MPC ​including Governor Andrew Bailey preferred no ⁠change pending clearer signs of the impact of the Iran war on inflation.

Governor Bailey's Perspective

On Tuesday, Bailey repeated his view that pressure on broader inflation in the UK from the energy shock had so far been subdued, "but the longer this goes on, the harder it gets."

Article Credits

(Writing by William Schomberg, editing by Sam Tabahriti)