Bank of England has signalled “some action” on rates – Pill

The Bank of England sent a signal on Thursday that there will be “some action” with its benchmark Bank Rate to get inflation back 2%, the BoE’s new chief economist Huw Pill said on Friday.

Pill also said the financial market expectations for future rate hikes that were used in the BoE’s new economic forecasts “entailed quite a steep increase in rates” which would have led to Bank Rate hitting 1% by the end of 2022.

The BoE on Thursday kept interest rates on hold, wrong-footing many investors who had expected a first hike since the COVID-19 pandemic hammered Britain’s economy last year.