Huw Pill the Bank of England’s top economist has said that it is “not unreasonable” to expect an interest rate cut this summer.
Pill said during an event organised by the ICAEW, an accountancy body, he said that if inflation continues to ease then this could see interest rates cut.
Pill said, “I think it’s not unreasonable to believe that through the summer we will begin to see enough confidence in the decline in persistence that bank rate will come into consideration.”
The governor of the Bank of England, Andrew Bailey said last week that in June it cannot be “ruled out” there could be a rate cut.
Last week the BoE held interest rates at 5.25% at a 16-year high and Bailey gave his “optimism” that things are moving in the right direction.
The latest inflation forecasts points towards a 2% CPI target being achieved in the second quarter of 2024.
However, Pill said that there is “some way to go” to keep inflation to the Bank’s 2% target.
