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BoE Chief Economist Huw Pill articulated a cautious stance on the prospect of interest rate cuts, noting that such a move remains “some way off.” He underscored the absence of adequate evidence suggesting a trajectory towards the inflation target, which necessitates a sustained period of tight monetary policy to mitigate domestic inflationary pressures.

“Crucially, for me at least, we don’t have sufficient evidence yet,” Pill stated, pointing to the need for more conclusive data to consider easing rates.

Further elaborating his view, Pill advised against overreacting to any short-term reversion of inflation to target level in the coming months, particularly if driven by external factors. Instead, he advocated for a focused and sustained effort to address domestic inflationary pressures through maintaining a restrictive policy stance.

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