Chief economist of the Bank of England: Price pressures are not as strong as overall inflation suggests.

Huw Pill, chief economist at the Bank of England, stated that inflationary pressures in the UK are not as strong as overall inflation expectations suggest, but he also maintains that policymakers should not cut interest rates again at this time. The day before the October inflation data was released, Pill said that a series of one-off factors affecting prices may be temporary, but he reiterated concerns that the economic impact on households and businesses may have changed the behavior of price and wage setting. "I think the underlying inflation dynamics in the UK may not be as strong as current overall inflation suggests, but that doesn't mean I fully accept that view," he said in a fireside chat hosted by Natixis Corporate and Investment Banking. He stated that the current momentum of domestic prices and wages is "not fully compatible with the inflation target," and added that "there is still work to be done."