Bank of England chief economist warns against ‘complacency’ in fight against inflation – business live
Rolling coverage of the latest economic and financial newsThe oil price is nudging higher, after the latest tit-for-tat military strikes between the US and Iran.Brent crude is up almost 1% at $72.61 a barrel, having fallen to its lowest level since just before the confict began on Friday. Continue reading…
Graeme Wearden
June 29, 2026
0 Comments
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.
HuwPill 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:
“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’.”
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.
The City money markets are now only fully pricing in a rise in interest rates by next February – earlier this year, as many as three rises this year were priced in.
“The world is becoming more uncertain and becoming more complex,” Mr Pill concluded.
“What we can guarantee is that monetary policy is not adding to uncertainty, and I think that is where we should keep the focus.”
The agenda
9.30am BoE mortgage approvals and consumer credit data
18.30pm BST: Christine Lagarde, president of the European Central Bank, gives speech at the ECB Forum on Central Banking 2026
The oil price is nudging higher, after the latest tit-for-tat military strikes between the US and Iran.
Brent crude is up almost 1% at $72.61 a barrel, having fallen to its lowest level since just before the confict began on Friday.
Oil prices are pushing. up after Tehran launched drone and missile attacks against Bahrain and Kuwait on Sunday after new US strikes on sites in southern Iran.
Last night, a US official said both sides had agreed to “stand down”, which is probably helping the oil price from rising more sharply.
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.
HuwPill 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:
“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’.”
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.
The City money markets are now only fully pricing in a rise in interest rates by next February – earlier this year, as many as three rises this year were priced in.
Graeme Wearden
