BoE's Pill: The burden of proof is on those not wanting to raise rates

Bank of England Chief Economist Huw Pill said on Friday that, on the back of recent data, the burden of proof at the bank had shifted onto those not wanting to raise interest rates.

Market Reaction

FX markets do not seem to have reacted to the latest comments from Pill, who earlier also alluded to the fact that he wasn't yet sure how he would vote at the December policy meeting.

There has been an interesting development in GBP Short-Term Interest Rate (STIR) markets on Friday. December 2021 Sterling libor futures have rallied 5bps to 99.80 from previously around 99.75, implying that markets are revising lower their expected probability of the BoE hiking interest rates by 15bps in December (see the chart below). 

Source: Reuters Eikon