8/10, 9:01 PM (Source: TeleTrader)
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BoE's Pill: Full impact of rate hikes in late 2023

Bank of England chief economist Huw Pill estimated on Wednesday that the British economy wouldn't feel the full impact of increased interest rates before late next year, adding the central bank won't turn to quantitative easing in the upcoming years.

"The trouble is what we've done is only going to have an effect at the end of 2023," Pill said during an event hosted by the Bank of England, arguing the bank wasn't able to hike rates in late 2020 due to the coronavirus pandemic for the effects to show now.

The central bank increased its policy rate by 50 basis points last week, making the largest hike in 27 years in response to record inflation readings.

Baha Breaking News (BBN) / ND