BoE's Pill: Provided jobs market remains strong, rates will need to gradually rise

Bank of England Chief Economist Huw Pill said on Friday that provided the jobs market continues to be strong, interest rates will need to gradually increase in the coming months, according to Reuters. The economic picture is still uncertain, he added, saying that the BoE can’t give precise guarantees on what will happen to interest rates. Moreover, the BoE should take a cautious approach to policy, assessing each decision on a step-by-step basis, he noted, adding that, in his opinion, the burden of proof has now clearly shifted onto the rates decision. 

In September, Pill said, I was seeking data to confirm my assessment of the strength of the post-pandemic recovery and accumulation of inflationary pressures. Now, he added, I scan incoming information for challenges to that view.