Bank of England will raise interest rates again, says chief economist

The Bank of England raised interest rates to 3% last week. Photograph: Maja Smiejkowska/Reuters

The Bank of England is preparing to further raise interest rates over concerns that inflation could become embedded in the British economy, despite the growing risks of a prolonged recession, its chief economist has warned.

Huw Pill said there was “still more to do” to tackle soaring inflation after the central bank raised interest rates to 3% last week with the biggest single rise in borrowing costs since 1989.