Pill Advocates for 4% Bank Rate Amid Growing Inflation Concerns

UK interest rates remain a topic of debate as Bank of England's chief economist Huw Pill advocates for a 4% Bank Rate, arguing that a quarter-point increase from 3.75% could reduce the need for harsher action later.

The two-year gilt ended at 4.5335%, while the 10-year closed at 5.1345%, but these gaps are not a forecast of one policy rate as they include inflation, term, and fiscal risk.

Pill's speech did not trigger a fresh bond rout, and rate futures on Thursday showed little more than a 15% chance of a September increase, with November's probability exceeding 70%.