Pill Advocates for Higher Bank Rate Amid Middle East Economic Uncertainty

Huw Pill, Chief Economist and Executive Director of Monetary Analysis at the Bank of England, spoke at an Edinburgh Chamber of Commerce roundtable on September 3, 2026. He discussed how recent events in the Middle East have impacted monetary policy in the UK.

Pill explained that raising the Bank Rate to 4% in recent MPC meetings was a necessary step to steer markets and reduce uncertainty. He argued that clear, prompt, and decisive policy action and communication would help support monetary policy transmission and prevent inflationary pressures from becoming embedded and persistent.

The Middle East events have created significant challenges for the UK economy, with potential for rising prices and reduced economic growth. Pill emphasized the importance of understanding the experiences and concerns of businesses in Scotland to inform policy discussions.