Bank of England's Huw Pill: Monetary policy tightening 'is working' - reports

Inflation has begun to ease

Cristian Angeloni
clock • 2 min read

The Bank of England’s chief economist Huw Pill has said the central bank’s interest rate hikes have started to have an effect on inflation.

Speaking at an online briefing on Friday (4 August), Pill said "monetary tightening […] is working", with headline inflation beginning to drop thanks to lower food and energy prices, according to a report by the Financial Times. Following the BoE's latest interest rate increase on 3 August by 25bps to 5.25%, the chief economist argued tighter monetary policy has started to curb the risks of more persistent inflation becoming embedded in the UK economy. Bank of England hikes rates by 25bps to 5.25% He added higher employment and lower job vacancies will lead to lower wage growth, al...

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