The Bank of England’s chief economist, Huw Pill gave a hawkish speech at the Money Market Association of New York University on Monday. Pill touched on many of the factors influencing the Bank’s monetary policy outlook, including the economic impact of the Covid-19 pandemic and “tight labour markets”. He also spoke about the challenges created by “the significant adverse terms of trade shock to Europe – including the UK” following invasion of Ukraine.
The Bank of England is set to decide on its latest interest rate on February 2nd and the consensus is a 69% chance of a 50 basis-point (bps) hike (with the remainder at 25 bps). Sterling watchers and market watchers in general will be keeping a close eye on the BoE’s decision.
