BoE Chief Economist Pill says process of disinflation is intact, it is not complete; need to maintain monetary policy restrictiveness

• Underlying inflation should be focus of policy.
• Key question for me is whether firms' wage and price-setting plans are settling at levels slightly higher than consistent with 2% CPI.
• Disinflation is not rapid or as convincing as he had hoped.
• Growth in the UK is positive but not very dynamic and strong cyclical component.
• Trend productivity is not going back to where it was.
• Productivity improvements are cyclical and mechanical.
• More concerned about a step down than step up.
• Disinflation in underlying services is flattening.

BoE Chief Economist Pill's remarks suggest a cautious stance on disinflation, indicating that while the process is ongoing, it lacks the momentum needed for policy shifts. His focus on underlying inflation and concerns about wage-setting imply the BoE may maintain a restrictive policy approach, which could support British yields and the GBP in the near term, as markets weigh the interplay of inflation dynamics and growth prospects.