BoE’s Pill Doubts Four Rate Hikes Ahead

Bank of England Chief Economist Huw Pill has pushed back against market expectations for four quarter-point interest-rate increases over the coming year, saying he is skeptical that such a path is necessary to contain inflation. Although Pill has repeatedly voted to raise rates, he cautioned that any increase now should not be taken as the start of a series of hikes. The Bank has held its key rate at 3.75% while weighing how energy-price pressures linked to the Iran war will affect broader inflation; Governor Andrew Bailey has said those pressures have so far been contained, though they could intensify if the shock persists.