Boe Chief Economist Pill Hints Traders Rate Hike Expectations Are Wrong
The central bank on Thursday raised interest rates by 75 basis points, the biggest single increase since 1989, and warned of a prolonged recession, while also looking to moderate market expectations for further aggressive monetary tightening. The Bank of England has an inflation target of 2%, but price rises hit a 40-year high of 10.1% in September and are expected to peak in the fourth quarter. “We both need to grow [the] bank rate but also take steps to taper QE [quantitative easing] portfolio, to tighten policy to achieve our goal,” Pill said....