BoE's Pill (annual report): "Based on the available data, I expect the disinflation process to continue, with CPI inflation falling close to 2% in the spring"

• "My view is that we should use the expected decline back to 2% to target to anchor inflation expectations. It is not a time for complacency. We should also be symmetric: if we looked through the temporary hump in inflation during 2025, we should similarly look through the trough expected in spring 2026"

The BoE's Pill expects the disinflation process to continue, predicting CPI inflation near 2% by spring. This guidance suggests a focus on maintaining inflation expectations and implies a potentially cautious approach to monetary policy, as it signals neither complacency nor aggressive tightening. This positioning may affect GBP and influence fixed income markets depending on how investors interpret the central bank's commitment to managing inflation over the medium term.