Bank of England’s chief economist calls for ‘more cautious’ interest rate cuts

The Bank of England should be “more cautious” over reducing interest rates due to concerns over stubborn inflation.

Huw Pill, chief economist at the central bank, said in a speech in London that he “would expect further cuts” in the interest rate over the next year if conditions are in line with expectations.

But he stressed that it is important that rate-setters at the bank do not seek to cut borrowing costs “too far or too fast”.

Pill was among members of the central bank’s nine-strong Monetary Policy Committee (MPC) to vote in favour of holding interest rates at 4% last month.

They are widely expected to keep interest rates at this rate at next month’s meeting after recent uptick in inflation, which was most recently recorded at 3.8%.

It expects interest rates to have peaked at 4%