Bank of England’s Top Economist Says Summer Rate Cut is Not Unreasonable
Huw Pill, the Bank of England’s chief economist, thinks it’s worth keeping your eyes on the calendar this summer. “It’s not unreasonable to expect a rate cut,” he told a crowd at an ICAEW event.
Why the summer cut is on the radar
- Inflation easing plays a role: If price pressures soften, the Bank may feel confident enough to lower rates.
- Summer confidence boost: “Through the summer we’ll see enough confidence in the decline in persistence,” Pill said, hinting that the market could lean on lower borrowing costs.
- Governor’s stance: Andrew Bailey confirmed a June cut can’t be ruled out, while keeping the current 5.25 % as a 16‑year high.
- Target‑is‑in‑view: Latest forecasts suggest the 2 % CPI goal will be met by Q2 2024, but there’s still a “way to go.”
So, if you’re thinking of buying a new oven or that fancy espresso machine, it might just be worth waiting for summer’s cool‑down on interest rates!
