Huw Pill, Chief Economist of the Bank of England (BoE), made evaluations about the monetary policy followed by the central bank and the inflation rate in the country in an interview with Swiss newspaper Le Temps.
“We increased interest rates by 400 basis points,” Pill said in an interview published on Monday, adding that it will take eighteen months for these measures to take effect. “Should more be done?” Answering the question, Pill said that it is necessary to see the course of inflation.
In his assessment of the possible rate hike, Pill noted that the central bank will look at developments in the labor market and the ability of companies to raise prices. Pill also stated that the aim of the BoE is to reduce inflation to the target level “without undue damage to the economy”.
Pill reiterated the bank’s promise to reduce inflation in the UK to 2 percent, predicting that inflation will fall sharply this year following the decline in gas prices.
But Pill made its comment on energy prices ahead of the OPEC+ decision announced on Sunday. OPEC+ announced on Sunday that it has decided to cut oil production, which exceeds 1 million barrels a day, starting from May.