Pill Pushes for Rate Hike as Inflation Risks Grow

Huw Pill, the chief economist at the Bank of England, is calling for a 'prompt' interest rate hike to address inflationary pressures 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 inflation 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%.

He argued that raising interest rates to 4% would deliver a 'clear and unambiguous signal' of the MPC's willingness to address upside risks stemming from events in the Middle East.