BoE's Huw Pill hints at further rate hikes if inflation remains 'stubbornly high' - reports
investmentweek.co.ukHuw Pill (pictured), chief economist at the Bank of England
According to The Times, Pill said: «One of the risks looking forward is that the underlying persistence in inflation may be a bit more sustained because what we are seeing is a slowdown in activity, which is more supply-driven than demand-driven.»
The chief economist warned that wage growth remained «very strong» in the UK, as service inflation had been «stubbornly high», according to Bloomberg.
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While this did not mean that the central bank needed to raise interest rates further, Pill said the BoE was «prepared to if we learn things that go in a concerning inflationary direction».
The remarks represented a hawkish turn for Pill, who had previously indicated that rate cuts from the central bank could be under consideration in the middle of next year.
«There are signs that the economic momentum in the real part of the economy is not as strong as it was,» added Pill. «That resilience seems to be a little bit easing.»
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