BOE's Pill 'Skeptical' Four Rate Rises Needed to Tame Inflation
By Paul Hannon
It is not clear that the Bank of England will need to raise its key rate by a full percentage point in order to tame inflation, as investors expect, Chief Economist Huw Pill said Wednesday.
The BOE has left its key rate at 3.75% since December, diverging from the Federal Reserve and the European Central Bank, both of which have lifted borrowing costs in response to the rise in energy prices since the start of the U.S.-Iran war.
Over recent meetings, Pill has voted against the majority and in favor of a rate rise, arguing that policymakers couldn't afford to wait for clarity on the duration and impact of the conflict.
However, he said the size of the response that is now needed to contain inflation is uncertain, but may not be as large investors now expect.
"Is it obvious that we will need to follow market pricing to four 25 basis point hikes?" he said. "There I would be a little more skeptical."
Write to Paul Hannon at paul.hannon@wsj.com
(END) Dow Jones Newswires
October 14, 2026 02:43 ET (06:43 GMT)
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