Bank Of England Urged To Exercise Caution In Interest Rate Cuts

According to Odaily, the Bank of England's Chief Economist, Huw Pill, has emphasized the need for caution in reducing interest rates, as the effort to curb inflation is still ongoing. This statement follows the Bank of England's recent interest rate cut, marking the third reduction since rates were raised to a 14-year high in 2023. Pill noted that while inflation is expected to reach the Bank's 2% target, underlying price pressures remain. Despite the challenging growth of the UK economy, he advised against hasty further rate cuts. Pill stated, "We have been able to remove some of the previous constraints due to our success in controlling inflation, but the task is not yet complete." He added that more work is needed to lower inflation, indicating that it is not feasible to remove all restrictions or significantly cut rates overnight.