High inflation "still requires tighter monetary policy", MPC member says
Inflation is "uncomfortably high" and "acting to achieve the MPC’s 2% inflation target is now more important than ever", according to Huw Pill, chief economist and executive director for monetary analysis.
"The MPC has taken the view that monetary tightening has been required to ensure that inflation returns to target. I would anticipate that we will see more policy tightening ahead."
Pill predicts that high inflation "still requires tighter monetary policy", noting that since he joined the MPC last September, the Committee has raised Bank Rate cumulatively by more than one percentage point to 1.25%.
He said Committee members are "now considering whether to start selling gilts, as well as implementing further interest rate increases".
Pill added: "The MPC has taken the view that monetary tightening has been required to ensure that inflation returns to target. I would anticipate that we will see more policy tightening ahead."
The MPC recently emphasised its "preparedness to act forcefully, if necessary, to indications of more persistent inflationary pressures".
In response, Huw Pill said: "At least on my part, this statement reflects a willingness – should circumstances require – to adopt a faster pace of tightening than we have seen implemented in this interest rate cycle so far."
Breaking news
Direct to your inbox:
More
stories
you'll love:
This week's biggest stories:
Inflation
Interest rates could rise as Bank of England responds to oil shock
First-time Buyer
Just one profession pays enough for buyers to afford average UK home
FCA
APPG urges overhaul of 'systemically flawed' UK financial conduct regulation
Interest Rates
Bank of England forecast to hold interest rates 'well into 2027' as inflation tops 4%
This week's biggest stories:
Inflation
Interest rates could rise as Bank of England responds to oil shock
First-time Buyer
Just one profession pays enough for buyers to afford average UK home
FCA
APPG urges overhaul of 'systemically flawed' UK financial conduct regulation
Interest Rates
Bank of England forecast to hold interest rates 'well into 2027' as inflation tops 4%
Bank Of England
Bank of England holds interest rates as inflation risks persist
FCA
FCA confirms new incident reporting and third party rules
