Pill Suggests Prompt Interest Rate Hike Could Avoid More Aggressive Increases

Bank of England Chief Economist Huw Pill has made remarks suggesting that increasing interest rates now could potentially lower the probability of the central bank needing to take more forceful action later to control inflation.

In his prepared speech for delivery to the Edinburgh Chamber of Commerce on Thursday, Pill emphasized that raising the Bank Rate does not necessarily mean a prolonged and aggressive series of increases.

Pill's comments come after he and two other Monetary Policy Committee members voted in July to raise interest rates. However, the majority of committee members chose to wait for clearer indicators of how the Iran war will affect long-term inflation pressures.