Bank of England Chief Economist Cautions Against Premature Interest Rate Cuts

Huw Pill emphasizes the need for caution in reducing rates despite recent economic improvements and a declining inflation rate.

Huw Pill, the Bank of England's chief economist, warns against cutting interest rates too soon, citing risks of inflation resurgence.
Recent economic data shows UK service sector growth and a decrease in inflation, but Pill stresses the importance of a sustained trend before policy changes.
A May rate cut is now seen as less likely, with market expectations adjusting to a more cautious timeline for reductions.
Pill's remarks reflect concerns over persistent inflation dynamics and the potential consequences of premature easing.
Economic indicators such as the PMI index show recovery, but the Bank of England remains vigilant about the stability of inflation.