Bank of England (BoE) Chief Economist Huw Pill predicted on Wednesday that inflation in the United Kingdom will fall "rapidly" from the second half of 2023. He noted a decline in domestic demand "as household incomes are squeezed" and stated that supply chain issues are starting to ease.
However, Pill also pointed out that the labor market in the UK "remains very tight" and that the wage growth is not consistent with the 2% inflation goal. On the subject of further interest rate hikes, he said that the BoE's case case "does not involve rates reaching 5.25%."
