BoE’s Pill: Need for caution points to a gradual withdrawal of policy restriction
04.10.2024, 08:21

BoE’s Pill: Need for caution points to a gradual withdrawal of policy restriction

Bank of England (BoE) Chief Economist Huw Pill said in a scheduled appearance on Friday that there is an “ample reason for caution in assessing the dissipation of inflation persistence.”

Pill added that the “need for such caution points to a gradual withdrawal of monetary policy restriction.”

Additional comments

Further cuts in bank rate remain in prospect but it will be important to guard against the risk of cutting rates either too far or too fast.

I remain concerned about the possibility of structural changes sustaining more lasting inflationary pressures.

 Current wage and services price inflation are a source of continued concern.

Market reaction

At the press time, GBP/USD is off the highs, despite the prudent comments, trading 0.21% on the day at 1.3150.

British Pound PRICE Today

The table below shows the percentage change of British Pound (GBP) against listed major currencies today. British Pound was the strongest against the New Zealand Dollar.

  USD EUR GBP JPY CAD AUD NZD CHF
USD   0.07% -0.24% -0.37% 0.03% -0.04% 0.12% 0.02%
EUR -0.07%   -0.26% -0.45% -0.02% -0.12% 0.07% -0.07%
GBP 0.24% 0.26%   -0.13% 0.27% 0.17% 0.35% 0.21%
JPY 0.37% 0.45% 0.13%   0.41% 0.33% 0.48% 0.36%
CAD -0.03% 0.02% -0.27% -0.41%   -0.09% 0.12% -0.06%
AUD 0.04% 0.12% -0.17% -0.33% 0.09%   0.18% -0.01%
NZD -0.12% -0.07% -0.35% -0.48% -0.12% -0.18%   -0.16%
CHF -0.02% 0.07% -0.21% -0.36% 0.06% 0.00% 0.16%  

The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the British Pound from the left column and move along the horizontal line to the US Dollar, the percentage change displayed in the box will represent GBP (base)/USD (quote).

 

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