Landbay found that 82% of brokers did not agree with the Bank of England’s (BoE) chief economist Huw Pill, who said interest rates are falling too fast.
Just 13% of brokers polled agreed with Pill, while 5% said they were not sure, when asked if they agree with Pill that interest rates are falling ‘too fast’.
Pill has warned that the BoE has been cutting rates too quickly and said the level should have stayed unchanged due to persistent inflation.
Pill said: “I remain concerned that we have seen a sort of structural change in price and wage-setting behaviour, maybe driven by the type of things that were involved in models of the inflation process from the ’70s and ’80s.”
“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.”
He added investors should not assume the bank’s forecast – that inflation would return to target by early 2027, was an endorsement of market bets on future rate cuts.
He opposed the quarter-point cut to 4.25% in May and said policymakers should “skip” a cut this quarter instead of stopping reductions altogether.
Rob Stanton (pictured), sales and distribution director at Landbay, said: “Huw Pill has been a consistent voice of caution while the central bank has been making rate reductions.
“He’s not alone: both he and Catherine Mann have advocated for rates to be held recently.
“While intermediaries clearly don’t hold with his views, the brokers we have polled are not outliers: the majority of the MPC opted for a quarter-point reduction in rates to 4.25 per cent recently – and there’s a cohort of the MPC calling for a sharper, half-point cut in rates given weak economic growth and dangers, including the global trade conflict.”
