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Central BanksMedium•6 November 2026•
1 min read

BoE's Pill Signals Potential Rate Cuts in 2026 if Economic Growth Stalls

Key Facts

1BoE Chief Economist Huw Pill stated the bank will not repeat the aggressive rate hiking cycle seen in 2022.
2Pill noted that interest rates could remain on hold or even fall next year if economic growth stalls.
3Pill emphasized that the outlook for next year becomes more uncertain from the spring with no predetermined path for rates.

Bank of England Chief Economist Huw Pill stated that the bank will not repeat the aggressive rate hiking cycle seen in 2022. According to investinglive.com, Pill noted that interest rates could remain on hold or even fall next year if economic growth stalls, emphasizing that the outlook for 2027 becomes more uncertain from next spring with no predetermined path for rates.

These remarks follow the BoE interest rate decision on November 5, 2026, which saw rates move to 4% amid a shift in the MPC vote count to 1 member in favor. Economic pressure was further evidenced on November 6, 2026, as the House Price Index fell 1.2% annually, aligning with the growth risks highlighted in Pill's assessment of the economic outlook.

Bank of England Governor Andrew Bailey is scheduled to deliver a speech on November 9, 2026, which may provide further context regarding the central bank's stance on future rate adjustments.