Bank of England (BoE) Chief Economist and member of its Monetary Policy Committee (MPC) Huw Pill issued a cautious statement on the inflation outlook and premature easing of interest rates.
"After several years of above-target inflation rates and given the threat of persistent inflation dynamics becoming embedded in expectations, in my view, there are greater risks associated with easing too early should inflation persist rather than easing too late should inflation abate," Pill stated in a speech given at the London campus of the University of Chicago Booth School of Business.
At the same time, Pill noted that the improving situation would also require close monitoring, specifically how changes in potential rate cuts may affect and influence both the market and retail rates. In addition, he warned against expectations of a rapid change in the way monetary policy in the UK is presented.