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 UK\u2019s Bridgepoint buys US real estate unit<\/p>\n Shares in UK private equity firm Bridgepoint have jumped by over 9% in early trading after announcing a foray into the US property world.<\/p>\n Bridgepoint are buying Florida-based Kayne Anderson Real Estate in a cash-and-share deal worth $1.393bn.<\/p>\n Although \u201cKayne Anderson\u201d sounds like an exciting combination for England at the World Cup, they\u2019re actually an investment management firm. As well as the real estate arm which Bridgepoint are buying, the group also operates in energy and infrastructure, private credit and wealth management.<\/p>\n Raoul Hughes, chief executive of Bridgepoint, says:<\/p>\n double quotation mark\u201cThis marks another major step forward in our strategy to strengthen our position as a leading global middle-market private markets platform. Real estate is a growing private markets asset class and Kayne Anderson Real Estate has built a leading position as a scaled specialist with an exceptional track record and strong fundraising momentum.<\/p>\n The Transaction is highly complementary and immediately accretive. Bridgepoint\u2019s and Kayne Anderson Real Estate\u2019s investor networks have limited overlap, creating attractive opportunities to broaden relationships and enhance fundraising.<\/p>\n Adding Kayne Anderson Real Estate creates a more balanced and diversified platform, with around half of our AUM invested in real assets and around half of our management fees generated in the US.\u201d<\/p>\n Share<\/a>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\/us\/wp-content\/uploads\/2026\/06\/Lauren_Almeida.png\")
Lauren Almeida<\/p>\n