Bank of England (BoE) Chief Economist Huw Pill said in a scheduled appearance on Friday that there is an “ample reason for caution in assessing the dissipation of inflation persistence.”

Pill added that the “need for such caution points to a gradual withdrawal of monetary policy restriction.”

Additional comments

Further cuts in bank rate remain in prospect but it will be important to guard against the risk of cutting rates either too far or too fast.

I remain concerned about the possibility of structural changes sustaining more lasting inflationary pressures.

 Current wage and services price inflation are a source of continued concern.