BoE’s Pill: Fine-tuning rates problematic amid energy uncertainty

TREE NEWS update: Bank of England Chief Economist Huw Pill said that against a backdrop of energy price uncertainty, “fine-tuning” interest rates is problematic. He noted the Monetary Policy Committee should be cautious in using extreme “hypothetical” scenarios to illustrate its analytical framework. Rapid hikes in Bank Rate could curb some potential hidden “catch-up” effects, but such increases would not signal the start of a “persistent and aggressive” tightening cycle.