Bank of England chief economist hints at bigger interest rate rises to tackle inflation
Huw Pill said he would be open to voting for a larger move than the 0.25 percentage point increases implemented so far if warranted.
The Bank of England's chief economist has hinted at bigger interest rate hikes to come in a bid to tackle soaring inflation.
Huw Pill said he would be open to voting for a larger move than the 0.25 percentage point increases implemented so far if warranted.
Speaking at a banking conference, he expressed his "willingness to adopt a faster pace of tightening", but emphasised that this would depend on "the data that we see and my interpretation of it".
He stressed that "much remains to be resolved before we vote on our August policy decision".
Mr Pill reiterated the Bank's pledge in June to "act forcefully" to tackle the threat of long-term high inflation.
However, he also said he preferred a "steady-handed" approach for now, warning that "one-off bold moves" can be "disturbing in terms of their impact on financial markets".
If the Bank lifted rates from 1.25% to 1.75% in August, it would mark the biggest single rise since it gained independence in 1997.
Financial markets see a 60% chance of this happening and if it did, it would echo similar moves by the US central bank.
Deputy governor Sir Jon Cunliffe said the Bank would take action to bring inflation levels back down to the Bank's target of 2%.
"We will do whatever is necessary to ensure that as this period of inflation goes through the economy, it does not leave us with a persistent domestically generated inflation problem," he told BBC Radio 4's Today programme.
"We will act to make sure that doesn't happen."
Inflation hit a new 40-year high of 9.1% in May and is forecast to reach 11% in the autumn.
Sir Jon said he expects that the cost of living squeeze will counteract inflation as people cut back on spending and slowing demand reins in price increases.
Huw Pill said he would be open to voting for a larger move than the 0.25 percentage point increases implemented so far if warranted.
Speaking at a banking conference, he expressed his "willingness to adopt a faster pace of tightening", but emphasised that this would depend on "the data that we see and my interpretation of it".
He stressed that "much remains to be resolved before we vote on our August policy decision".
Mr Pill reiterated the Bank's pledge in June to "act forcefully" to tackle the threat of long-term high inflation.
However, he also said he preferred a "steady-handed" approach for now, warning that "one-off bold moves" can be "disturbing in terms of their impact on financial markets".
If the Bank lifted rates from 1.25% to 1.75% in August, it would mark the biggest single rise since it gained independence in 1997.
Financial markets see a 60% chance of this happening and if it did, it would echo similar moves by the US central bank.
Deputy governor Sir Jon Cunliffe said the Bank would take action to bring inflation levels back down to the Bank's target of 2%.
"We will do whatever is necessary to ensure that as this period of inflation goes through the economy, it does not leave us with a persistent domestically generated inflation problem," he told BBC Radio 4's Today programme.
"We will act to make sure that doesn't happen."
Inflation hit a new 40-year high of 9.1% in May and is forecast to reach 11% in the autumn.
Sir Jon said he expects that the cost of living squeeze will counteract inflation as people cut back on spending and slowing demand reins in price increases.
AI Disclaimer: An advanced artificial intelligence (AI) system generated the content of this page on its own. This innovative technology conducts extensive research from a variety of reliable sources, performs rigorous fact-checking and verification, cleans up and balances biased or manipulated content, and presents a minimal factual summary that is just enough yet essential for you to function as an informed and educated citizen. Please keep in mind, however, that this system is an evolving technology, and as a result, the article may contain accidental inaccuracies or errors. We urge you to help us improve our site by reporting any inaccuracies you find using the "Contact Us" link at the bottom of this page. Your helpful feedback helps us improve our system and deliver more precise content. When you find an article of interest here, please look for the full and extensive coverage of this topic in traditional news sources, as they are written by professional journalists that we try to support, not replace. We appreciate your understanding and assistance.
