Main Street Independent

TAG  ·  Economy

monetary policy

BOE's Pill questions need for full percentage point of rate hikes

Illustration accompanying article: BOE's Pill questions need for full percentage point of rate hikes
  • Bank of England Chief Economist Huw Pill said Wednesday that it is not clear the BOE will need to raise its key rate by a full percentage point to tame inflation, as investors currently expect.
  • Pill questioned market pricing of four additional 25-basis-point hikes, saying the size of the response now needed to contain inflation is uncertain and may be smaller than markets imply.
  • The BOE has held its benchmark rate at 3.75% since December, diverging from the Federal Reserve and the European Central Bank, which have raised borrowing costs in response to energy price increases tied to the U.S.-Iran war.
  • Over recent meetings, Pill has voted against the majority on the Monetary Policy Committee and in favor of a rate rise, arguing policymakers could not afford to wait for clarity on the conflict's duration and impact.
 2026-10-14 · 3 MIN READ

Bank of England holds rate at 3.75% while Fed, ECB raise theirs

Illustration accompanying article: Bank of England holds rate at 3.75% while Fed, ECB raise theirs
  • The Bank of England held its benchmark interest rate at 3.75% on Thursday, diverging from the Federal Reserve and European Central Bank, which have raised rates in recent days.
  • Three of nine Monetary Policy Committee members voted for an immediate increase to 4%, with Huw Pill among the dissenters.
  • UK inflation rose to 3.1% in August, driven by fuel prices and household energy costs, though officials said higher energy costs have not yet spilled into wages or everyday prices.
  • The BOE will pause auctions of UK government bonds until April while it reviews its approach to selling gilts back to the government.
 2026-09-17 · 3 MIN READ
Illustration accompanying article: EU proposes Canada as first-ever 'associate member'