Central Banks
BOE Chief Economist Says UK Inflation at ‘Turning Point’
- Huw Pill says key measure of price increases should decrease
- UK economy grew by sluggish 0.1% in first quarter of year
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Bank of England Chief Economist Huw Pill gave the clearest indication yet that officials think they might be able to pause their rate-hiking cycle, saying inflation has hit a “turning point” and is likely to slow.
Pill told an online call with business leaders Friday that inflation should start to tumble as the base effects of huge energy rises this time a year ago start to fall out of the calculations. Domestic demand was likely to weaken as mortgage holders feel the impact of higher borrowing costs when their fixed-term deals finish, he said.