By Paul Hannon

A first cut in the Bank of England's key interest rate is still "some way off," the U.K. central bank's chief economist said Friday.

Having raised its key interest rate in 14 straight meetings from the end of 2021, the BOE has kept rate rises on hold since August 2023. Earlier this month, it signaled that it is likely to cut its key interest this year, but left the timing of that first move open.

Speaking in Cardiff, the Welsh capital, Huw Pill said that while there are some signs that the decline in inflation over recent months will be sustained, he is not yet ready to vote for a rate cut.

"I need to see more compelling evidence that the underlying persistent component of...inflation is being squeezed down to rates consistent with a lasting and sustainable achievement of the 2% inflation target," he said.

Wrtie to Paul Hannon at

(END) Dow Jones Newswires

03-01-24 0950ET