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Bank of England's Pill says interest rates might need to stay high
Bank of England Chief Economist Huw Pill said on Tuesday that he was worried that inflation in Britain could prove stronger than expected by the central bank and interest rates might need to stay higher than investors are thinking. Pill said inflation might be hard to get back to the BoE's 2% target which might "mean that the response of monetary policy, in order to ensure that we get back to our target within a reasonable cycle, needs to be somewhat more aggressive or more persistent in itself." Last week, Pill voted against the BoE's quarter-point interest rate cut. In his comments on Tuesday, he said investors ... (full story)
