Advertisement
Advertisement

BoE’s Pill warns big rate rises risk roiling markets

By:
Reuters
Published: Jul 6, 2022, 09:36 UTC

LONDON (Reuters) - Bank of England Chief Economist Huw Pill on Wednesday warned against raising interest rates in big, bold steps and reiterated his preference for a more "steady-handed" approach.

Traders work on the trading floor of Barclays Bank at Canary Wharf in London

LONDON (Reuters) – Bank of England Chief Economist Huw Pill on Wednesday warned against raising interest rates in big, bold steps and reiterated his preference for a more “steady-handed” approach.

“One-off bold moves can … be disturbing in terms of their impact on financial markets,” Pill told an audience following a speech to the Qatar Centre for Global Banking and Finance 2022 Conference at Kings College London.

He said the BoE should avoid gaining a reputation for “jerking around Bank Rate” in response to short-term economic news, as investors would view this as noise that would disrupt the transmission of monetary policy.

(Reporting by Andy Bruce; editing by David Milliken)

About the Author

Reuterscontributor

Reuters, the news and media division of Thomson Reuters, is the world’s largest international multimedia news provider reaching more than one billion people every day. Reuters provides trusted business, financial, national, and international news to professionals via Thomson Reuters desktops, the world's media organizations, and directly to consumers at Reuters.com and via Reuters TV. Learn more about Thomson Reuters products:

Did you find this article useful?

Advertisement