The chief economist of the Bank of England warns against rapid interest rate cuts and calls for a cautious approach.

Jin10 data reported on October 17 that the Chief Economist of the Bank of England, Pill, stated that in the context of rising risks of sticky inflation, decision-makers should adopt a more cautious approach to interest rate cuts. Pill indicated that if the economic performance aligns with the Bank of England's predictions, he expects further rate cuts in the coming year. However, he warned that due to the slow progress in reducing inflation, interest rates should not be lowered too quickly. This year, driven by food and energy prices, UK inflation has risen again. Data to be released next week is expected to show that the inflation rate in September reached 4%, which is twice the Central Bank's target of 2%. Households' expectations for future inflation have also risen, and Pill, along with other hawkish members, is concerned that this could create a “feedback loop” by driving up wage demands, further exacerbating price increases. Pill described the current level of inflation as “disappointing” and stated that “a more cautious approach should be taken from now on to withdraw monetary policy restrictions to ensure that inflation consistently falls back to the 2% target.”