Bank of England chief economist warns against ‘complacency’ in fight against inflation – business live

Introduction: BoE chief economist warns against 'complacency' on inflation Good morning, and welcome to our rolling coverage of business, the financial markets and the world economy. The Bank of England’s chief economist is warning against complacency in the fight against inflation, after finding himself in a minority at this month’s BoE interest rate vote. Huw Pill has told the Press Association that policymakers “should not be complacent” about the current rate of inflation, after the Consumer Prices Index (CPI) remained over the Bank’s 2% in May, at 2.8%. Pill argued that in the past, inflation running around one percentage point above target would have been seen as “problematic”, adding: double quotation mark “I think it should be seen as problematic, because our mandate is very clear; inflation at 2% at all times.” “I do fear a little bit that, because we saw inflation go to 11%, policy discussion becomes, ‘oh inflation at 3% is not so bad’.” Two week’s ago, the Bank’s monetary policy committee split 7-2 when it voted to leave borrowing costs on hold , with Pill and Megan Greene the lone voices for a hike in Bank rate. Pill also appeared to criticise the six cuts in interest rate since August 2024, arguing that on balance monetary policy “hasn’t been restrictive enough over the last few years.” City economists have been cutting their forecasts for UK interest rate rises in recent weeks, as tensions in the Middle East have cooled somewhat, and the oil price has fallen. …