Pill Pushes for Rate Hike as UK Inflation Risks Persist

Bank of England chief economist Huw Pill has called for an interest rate hike to tackle inflationary pressures caused by the Middle East energy shock.

Pill made his comments in a speech at the Edinburgh Chamber of Commerce, reiterating concerns he expressed in July when he voted to raise interest rates from 3.75%.

He stated that keeping interest rates on hold may signal a 'bias to the status quo' and risk letting monetary policy fall behind in addressing emerging inflationary pressures.

Pill suggested raising interest rates to 4%, saying this would deliver a 'clear and unambiguous signal of the MPC's willingness and ability to address upside risks stemming from events in the Middle East.'