Speaking in Cape Town yesterday, Huw Pill presented two options to control UK inflation, recommending the Table Mountain model which would have interest rates rise sharply and come down at a faster rate.
Speaking at the South African Reserve Bank’s Biennial Conference, Pill said, “There may be multiple paths that get you to where you want to be,” Pill said in his speech. “Some of them have rates rising rapidly and falling rapidly in what is sometimes known as the Matterhorn profile.
“The alternative would be to hold restriction for longer in a more steady and resolute way with a profile for interest rates that looks more like the Table Mountain. I would tend to favour the latter.”
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