Pill also appeared to criticise the six cuts in interest rate since August 2024, arguing that on balance monetary policy \u201chasn\u2019t been restrictive enough over the last few years.\u201d<\/p>\n
City economists have been cutting their forecasts for UK interest rate rises in recent weeks, as tensions in the Middle East have cooled somewhat, and the oil price has fallen.<\/p>\n
The City money markets are now only fully pricing in a rise in interest rates by next February \u2013 earlier this year, as many as three rises this year were priced in.<\/p>\n
But the latest round of escalating strikes between Iran and the US last weekend<\/a> has shown that the peace deal will not be easy to secure.<\/p>\n As Pill puts it:<\/p>\n double quotation mark\u201cThe world is becoming more uncertain and becoming more complex,\u201d Mr Pill concluded.<\/p>\n \u201cWhat we can guarantee is that monetary policy is not adding to uncertainty, and I think that is where we should keep the focus.\u201d<\/p>\n The agenda<\/p>\n 9.30am BoE mortgage approvals and consumer credit data<\/p>\n 18.30pm BST: Christine Lagarde, president of the European Central Bank, gives speech at the ECB Forum on Central Banking 2026<\/p>\n Share<\/a><\/p>\n Key events<\/p>\n BT and Verizon to create joint global business in $625m deal BT and the US mobile company Verizon are to combine their international businesses, ending the British telecom group\u2019s more than 18-month search for a buyer.<\/p>\n Verizon will pay a $625m (\u00a3473m) \u201cequalisation\u201d fee to BT to guarantee equal voting rights in the new 50\/50 joint venture, the companies announced on Monday. The deal is expected to create a company with more than 3,000 customers across about 180 countries and $4bn in combined annual revenue.<\/p>\n It marks the end of BT\u2019s long search for a buyer of its international business, as its chief executive, Allison Kirkby, works to refocus the company on the UK market.<\/p>\n She said the deal marked an \u201cimportant step forward for BT as a whole, as we deliver on our UK-focused strategy\u201d.<\/p>\n Share<\/a>BAT cutting 5,500 jobs in cost-saving drive<\/p>\n British American Tobacco has just become the latest company to cut jobs as it uses AI to boost productivity.<\/p>\n BAT has announced it will cut 5,500 jobs globally by the end of this year, through its Fit2Win transformation programme.<\/p>\n Fit2Win is expected to cut costs by \u00a3600m by the end of 2028, by reducing complexity, building closer partnerships with technology and business services companies, and streamlining the business.<\/p>\n Those partnerships include a tie-up with Accenture, to give access to \u201cadvanced AI solutions\u201d.<\/p>\n Tadeu Marroco, chief executive of BAT, said:<\/p>\n double quotation mark\u201cWe are building a future-ready organisation that is more agile, cost disciplined and technology enabled.<\/p>\n \u201cFit2Win is central to this ambition, strengthening how we operate and our ability to compete in a rapidly evolving environment.<\/p>\n \u201cThese changes affect many of our colleagues, and we are focused on supporting them through this transition with care and respect, as we position the business for the future.<\/p>\n In addition, around BAT 3,500 roles have been moved to \u201cstrategic partners\u201d.<\/p>\n Share<\/a><\/p>\n Updated at\u00a009.43 CEST<\/p>\n South Korea announces $590bn chipmaking expansion<\/p>\n Over in Korea, two of the country\u2019s chipmaking giants and the Seoul government have announced a massive manufacturing expansion costing more than half a trillion dollars, to address the shortages of AI chips.<\/p>\n President Lee Jae Myung pledged to cement South Korea\u2019s leadership in the industry with investments worth more than $576bn over several years covering semiconductors, AI data centres and robotics.<\/p>\n Under the plan, Samsung Electronic and SK Hynix will build a total of four fabrication plants in South Korea\u2019s southwest region.<\/p>\n Lee said:<\/p>\n double quotation mark\u201cWe must secure the core elements of AI faster than any other country.<\/p>\n Semiconductors, physical AI, and AI data centres are the triple axis for our great leap forward.\u201d<\/p>\n South Korea\u2019s stock market has more than doubled in value so far this year, thanks to the surge in demand for chips to power AI systems.<\/p>\n At the end of last week, Samsung\u2019s share price has jumped 183% so far this year, while SK Hynix had risen 310% since the start of January.<\/p>\n Share<\/a>Oil price rising after US-Iran attacks<\/p>\n The oil price is nudging higher, after the latest tit-for-tat military strikes between the US and Iran.<\/p>\n Brent crude is up almost 1% at $72.61 a barrel, having fallen to its lowest level since just before the confict began on Friday.<\/p>\n Oil prices are pushing. up after Tehran launched drone and missile attacks against Bahrain and Kuwait on Sunday after new US strikes<\/a> on sites in southern Iran.<\/p>\n Last night, a US official said both sides had agreed to \u201cstand down\u201d, which is probably helping the oil price from rising more sharply.<\/p>\n Share<\/a>Introduction: BoE chief economist warns against ‘complacency’ on inflation<\/p>\n Good morning, and welcome to our rolling coverage of business, the financial markets and the world economy.<\/p>\n The Bank of England\u2019s chief economist is warning against complacency in the fight against inflation, after finding himself in a minority at this month\u2019s BoE interest rate vote.<\/p>\n Huw Pill has told the Press Association that policymakers \u201cshould not be complacent\u201d about the current rate of inflation, after the Consumer Prices Index (CPI) remained over the Bank\u2019s 2% in May, at 2.8%.<\/p>\n Pill argued that in the past, inflation running around one percentage point above target would have been seen as \u201cproblematic\u201d, adding:<\/p>\n double quotation mark\u201cI think it should be seen as problematic, because our mandate is very clear; inflation at 2% at all times.\u201d<\/p>\n \u201cI do fear a little bit that, because we saw inflation go to 11%, policy discussion becomes, \u2018oh inflation at 3% is not so bad\u2019.\u201d<\/p>\n Two week\u2019s ago, the Bank\u2019s monetary policy committee split 7-2 when it voted to leave borrowing costs on hold<\/a>, with Pill and Megan Greene the lone voices for a hike in Bank rate.<\/p>\n Pill also appeared to criticise the six cuts in interest rate since August 2024, arguing that on balance monetary policy \u201chasn\u2019t been restrictive enough over the last few years.\u201d<\/p>\n City economists have been cutting their forecasts for UK interest rate rises in recent weeks, as tensions in the Middle East have cooled somewhat, and the oil price has fallen.<\/p>\n The City money markets are now only fully pricing in a rise in interest rates by next February \u2013 earlier this year, as many as three rises this year were priced in.<\/p>\n![\"Lauren](\"https:\/\/www.newsbeep.com\/ca\/wp-content\/uploads\/2026\/06\/Lauren_Almeida.png\")
Lauren Almeida<\/p>\n