- Huw Pill, the Bank of England’s chief economist, has warned that interest rates should be increased from 3.75 per cent to 4 per cent to tackle growing inflation risks caused by the energy crisis in the Middle East.
- Expressing discomfort with the 'wait-and-see' stance of fellow Monetary Policy Committee members, Mr Pill argued that policymakers cannot afford to wait for geopolitical uncertainties to resolve before acting.
- Mr Pill cautioned that holding rates steady risks signalling a bias towards the status quo, which could leave monetary policy falling behind in curbing emerging inflationary pressures.
- In July, Mr Pill was one of only two figures on the nine-member Monetary Policy Committee to vote for an interest rate rise, while the majority, including Governor Andrew Bailey, voted to hold rates steady.
- Separately, Bank of England Governor Andrew Bailey cautioned G20 finance ministers that a potential collapse of the artificial intelligence bubble could trigger a major global market downturn.
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