Interest rates may have hit their peak, according to the Bank of England’s top economist.
Huw Pill said he will vote to keep the bank’s rate at 5.25% when its monetary policy committee next meets.
At present, markets are pricing in an increase in the BoE’s policy rate to 5.75% by the end of the year, before lowering it in 2024 and beyond.
Pill said he favoured a more level and smooth path, akin to the profile of Table Mountain in South Africa, rather than a jagged path of sharp rises and falls, which he said was akin to the Matterhorn in the Alps.
A “Table Mountain” option would halt the interest rate at 5.25%, but keep it there for longer.
