Speaking at an event hosted by the Institute of Chartered Accountants of England and Wales today (9 November), Pill alluded to potential interest rate cuts in a manoeuvre aimed at tackling flat growth for the UK, according to The Times.
The chief economist also disregarded the potential of further rate hikes in the near future. His remarks were in contrast with BoE governor Andrew Bailey, who said at an event by the Central Bank of Ireland on Wednesday (8 November) that it was "too early" to talk about rate cuts.
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"Having established monetary policy in restrictive territory, it is not the case that we need to raise rates in order to bear down on inflation. Sustaining rates at their current restrictive level will continue to bear down on inflation," Pill said.
The economist's stance echoed comments he made earlier this week about investors forecasting rate cuts in the second half of 2024, as being not "totally unreasonable".
However, he noted there was no certainty in the path the Monetary Policy Committee will take, especially as the UK is still battling stubborn inflation, which currently stands at 6.7% - more than triple than the central bank's 2% target.
As a result, Pill argued the MPC will need to "deliver" a sustained period of tight monetary policy to meet its inflationary target.