Bank of England's Top Economist Urges Prompt Interest Rate Hike Amid Inflation Fears

The Bank of England's chief economist, Huw Pill, has called for a prompt interest rate hike to tackle inflation threats sparked by the Middle East energy shock.

In a speech at the Edinburgh Chamber of Commerce, Pill reiterated his concerns about leaving interest rates unchanged while waiting for clearer signs of how the Iran war has affected inflationary dynamics in the UK economy.

Pill was one of two members on the nine-person Monetary Policy Committee (MPC) to vote to raise interest rates in July, but he was outvoted by a majority preferring to keep rates at 3.75%, including governor Andrew Bailey.

Pill emphasized that there is ample reason to doubt a definitive resolution to the multiple uncertainties they face and cannot wait for these uncertainties to resolve themselves before acting.