Central Bank's Pill: Beware of a false sense of security about falling inflation There is still a long way to go before cutting interest rates

Sina Financial News Central Bank Chief Economist Huw Pill said that with headline inflation falling sharply this spring and possibly falling below the 2% target, officials must "guard against false sense of security"; this statement shows that he is cautious when considering when to cut interest rates. Pill said he was "still some way off" from voting for a rate cut, and even when the time came, monetary policy would continue to be "restrictive" to bring down price pressures. Pill voted last month with Long members of the nine-member Monetary Policy Committee (MPC) of the U.K. Central Bank to keep the Intrerest Rate at its highest level since 2008, Central Bank acknowledging that a rate cut is now on the agenda. Investors expect the first 25 basis point rate cut to come as early as August, followed by another later in the year.