Bank of England (BoE) Chief Economist Huw Pill said on Monday that by the middle of next year, they may be able to reconsider its stance on interest rates. He spoke during an online presentation organised by the BoE. 

Pill added that it is premature to discuss interest rate cuts and clarified that the Monetary Policy Committee (MPC) believes it is necessary to maintain rates at restrictive levels for a certain period. He also mentioned that rates in the future will likely be higher than those seen before the COVID-19 pandemic.

Market reaction

The GBP/USD is moving sideways around 1.2370, while the EUR/GBP is flat for the day, hovering around 0.8675. Market participants have largely ignored Pill's comments.