Gold prices recover as fiscal concerns, US rate uncertainty drive haven demand
Investing.com -- Bank of England Chief Economist Huw Pill advised policymakers against placing excessive emphasis on short-term economic data when evaluating the pace of inflation reduction.
Pill, who was part of the 5-4 majority that voted to maintain interest rates at the most recent meeting, made these comments during a panel discussion hosted by French financial services firm Natixis.
The chief economist expressed his view that Britain’s underlying inflation pressures are not as severe as the headline inflation figure of 3.8% might indicate. However, he pointed out that inflation-related metrics had not decreased as much as he anticipated in the past, despite signs of slowing wage growth and rising unemployment.
"I think policymakers should be cautious about over-interpreting the latest news in data, because there is a lot of noise in the data flow, and partly because of some of the challenges our colleagues in the Office for National Statistics have faced," Pill said.
Governor Andrew Bailey has suggested he might vote for a rate cut at the December meeting, depending on upcoming economic data.
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