London Daily

Focus on the big picture.

Bank of England chief economist Huw Pill regrets urging people to accept they are poorer

Bank of England chief economist Huw Pill regrets urging people to accept they are poorer

Mr Pill's comments signal the most recent interest rate rise may be the last for now.
The Bank of England's top economist has expressed regret for saying people need to accept being poorer.

Speaking on a podcast last month the chief economist at the Bank said there's a "reluctance to accept that yes, we're all worse off and we all have to take our share", due to inflation making goods more expensive.

"Somehow in the UK, someone needs to accept that they're worse off and stop trying to maintain their real spending power by bidding up prices, whether higher wages or passing the energy costs through onto customers," Huw Pill had said.

Speaking on Monday evening, however, Mr Pill stepped back from his comments.

"If I had the chance again to use different words I would use somewhat different words to describe the challenges we all face," he said.

The "viral response" to the remarks "perhaps hasn't been very helpful", Mr Pill added, to the understanding of inflation and higher interest rates imposed to combat price rises.

Mr Pill said he and the Bank of England "do recognise that we live in very difficult and challenging times".

"Those challenges are particularly acute for some parts of society".

But Mr Pill said it was part of his job to be upfront about economic problems: "I appreciate this is a little bit of a tough message, but... having to pay more for what we're buying from the rest of the world relative to what we're selling to the world is a squeeze on our spending power."

Interest rates have been risen to 4.5% by the Bank, making borrowing more expensive, in an effort to dampen growth and lower persistent double-digit inflation to the regulator's 2% target.

Addressing the central bank's programme of 12 consecutive interest rate rises, Mr Pill signalled the latest rise may be the last for now.

He "hopes" the Bank has sufficiently upped rates and said "I'd like to think that we have done enough".
Newsletter

Related Articles

London Daily
0:00
0:00
Close
Siemens Acquires Altair Engineering in $10.6 Billion Deal
The man who got hit by a bus and immediately went back to the pub is strong! Beer is very important.
Donald Trump files $10 billion lawsuit against CBS News, accusing them of 'deceptively doctoring' Kamala Harris' '60 Minutes' interview
Formal Address for Meghan Markle at Invictus Games
Understanding the US Electoral College System
Apple Launches AI Features on Select iPhones
JP Morgan Sued Customers Over Viral Cheque Fraud Scheme
King Charles to Continue Global Tours Despite Cancer Diagnosis
Venice Extends Tourist Entry Fee Program to 2025
Tommy Robinson Charged Under Terrorism Act for Phone Offence
Plans to Increase Employers' National Insurance Announced
Washington Post Editor-at-Large Robert Kagan has RESIGNED after owner Jeff Bezos BARRED the endorsement of Kamala Harris.
Massive Theft of Artisan Cheddar from Neal’s Yard Dairy
US Man Charged with Murder of Co-Worker over Breaks
Carbon Monoxide Incident Claims Lives at UK Care Home
Birmingham Airport Evacuated Due to Suspicious Vehicle
Former US President Barack Obama raps the lyrics to Eminem's ‘Lose Yourself’ after the rapper introduces him at a Kamala Harris rally in Detroit
KYIV URGES NORTH KOREAN TROOPS IN UKRAINE TO SURRENDER
Ofcom Identifies Link Between Social Media Posts and UK Unrest
Russian Boxer Receives Lifetime Ban for Illegal Move in Boxing Debut
Biden Labels Trump a Threat to Democracy
McDonald's Linked to E. coli Outbreak Leading to One Death
Teacher Enoch Burke arrested at Wilson’s Hospital School in Ireland after refusing to endorse and affirm transgender ideology.
FBI Investigates Leak of US Intelligence on Israeli Strike Plans
Israeli Airstrike Targets Hezbollah's Financial Resources
China’s Baidu is revolutionizing transportation with its robotaxi service
Angela Rayner Secures Permanent Seat on UK National Security Council
Russian Ambassador Claims UK's Proxy War in Ukraine
Doctor Advocates for Assisted Dying Law Reform
Ruth Davis Appointed as UK’s First Nature Envoy
Pressure Mounts on Starmer to Discuss Reparations at Commonwealth Summit
James Cleverly’s Costly In-Flight Catering for Government Trips
AI Regulation Takes Center Stage in 2024 US Presidential Campaign
NASA Study Explores Potential Microbial Life Beneath Mars' Ice
Cats: The Liquid-Like Pets
Netanyahu Condemns Alleged Hezbollah Assassination Attempt
Liam Payne's Tragic Death: Tributes Pour In
Cuba's Power Struggles: Nationwide Blackout Strikes Again
Xi Jinping Urges Troops to Prepare for Conflict Amid Taiwan Drills
Farage Supported by US PR Team Linked to Steve Bannon
Controversy Over MP's Comments on Female Candidate's Family Responsibilities
Highlights from the Conservative Leadership Contest TV Debate
Childminder Jailed for Inciting Racial Hatred After Southport Attack
NHS England's Repair Bill Soars to Almost £14 Billion
Russia Accused of Using Incendiary Devices to Disrupt Western Confidence
Culture Wars: 'A Dog Whistle to Attack the Right', Says Badenoch
Virtual Reality and Advanced Technologies in Combating Cocaine Addiction
Chancellor Rachel Reeves Assembles Taskforce to Safeguard Financial Stability Amid Increased Borrowing Plans
RAF Typhoon Intercepts Air India Flight After Bomb Threat
Hamas Chief Yahya Sinwar Killed in Israeli Operation
×