BOE’s Pill Says Rate Cut Possible This Year as ‘Reward’ for Inflation Drop

Bank of England Chief Economist Huw Pill said interest rates could drop this year as a “reward” to the economy for bringing inflation down.

Pill said borrowing costs are on track to fall so long as inflation declines as expected — and that the Consumer Prices Index doesn’t need to drop all the way to the 2% target before the cuts can begin. Monetary policy is now “on a different path than we were over the course of last year,” he said.