Bank of England (BoE) Chief Economist Huw Pill stated on Wednesday that the institution must be "realistic about how much any one or two releases can add to our assessment" concerning the link between the upcoming economic reports and future monetary policy decisions.
"While the MPC [Monetary Policy Committee] must remain open to the possibility that compelling new evidence could emerge ..., it should also remain cautious in seeing any single data as either a necessary or sufficient trigger for that re-assessment," Pill said in a speech before the Asia House in London.
Pill also warned that "[a]t annual [inflation] rates still not far from 6%, annual services price inflation and wage growth continue to point to an uncomfortable strength in those underlying inflation dynamics," but noted the current "absence of any big new shocks," which makes "the 'when-rather-than-if' characterization of prospective Bank Rate cuts ... appropriate."
