Pill Argues for Higher Interest Rates Amid Stronger UK Growth

Bank of England Chief Economist Huw Pill argued that stronger British economic growth data supports the case for higher interest rates to bring inflation back to target. According to Pill, the UK's second-quarter growth figures showed a 0.4% expansion, which reassures him that the economy is not entering a sharp downturn.

Pill voted for a rate increase at the Monetary Policy Committee's July meeting but was outvoted 6-3. He pointed to the growth data as evidence that higher interest rates are necessary to combat inflation.

The MPC voted to keep interest rates unchanged at its most recent policy meeting in July, but Pill emphasized that this record of only three of 59 months seeing inflation at or below the central bank's target level matters to him.