BoE's Pill says in the past the BoE has perhaps put too much weight on inflation being at target as opposed to future risks

The remarks from BoE's Pill suggest a cautious stance on cutting policy rates, emphasizing the need for progress on inflation indicators.

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BoE's Pill says in the past the BoE has perhaps put too much weight on inflation being at target as opposed to future risks

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  • Bearing down on inflationary pressures remains necessary, while there is still work to do. Underlying inflation seems to be in a 2.5-3.0% range.
  • Need to see more progress on the indicators of underlying inflation. On balance, risks are still to the upside on achieving the inflation target, means there is caution in a further reduction in policy rates.
  • Share a lot of the same views as Greene.
  • Personal focus has been on the underlying components of inflation.
Context

This highlights that while inflation is at target, upside risks remain significant, indicating that traders should be wary of a sustained dovish environment from the BoE. The emphasis on underlying inflation components may influence market expectations for future monetary policy actions.

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