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BoE’s Pill warns big rate rises risk roiling markets
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LONDON (Reuters) – Bank of England Chief Economist Huw Pill on Wednesday warned against raising interest rates in big, bold steps and reiterated his preference for a more “steady-handed” approach.
LONDON (Reuters) – Bank of England Chief Economist Huw Pill on Wednesday warned against raising interest rates in big, bold steps and reiterated his preference for a more “steady-handed” approach.
“One-off bold moves can … be disturbing in terms of their impact on financial markets,” Pill told an audience following a speech to the Qatar Centre for Global Banking and Finance 2022 Conference at Kings College London.
He said the BoE should avoid gaining a reputation for “jerking around Bank Rate” in response to short-term economic news, as investors would view this as noise that would disrupt the transmission of monetary policy.
(Reporting by Andy Bruce; editing by David Milliken)
Monetary policy refers to the actions taken by a central bank to manage the money supply and interest rates in an economy to achieve macroeconomic objectives such as controlling inflation, consumption, growth, and liquidity.
Interest rates are the cost of borrowing money or the return on savings, expressed as a percentage of the principal amount. They are influenced by central bank policies and can affect economic activity.
Financial markets are platforms where buyers and sellers engage in the trade of assets such as stocks, bonds, currencies, and derivatives. They play a crucial role in the economy by facilitating capital allocation.
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