Bank of England Chief Economist Huw Pill said an increase in interest rates could help reduce the risk of the central bank having to take more aggressive action later to bring inflation under control, as price pressures have risen following the Iran war, Reuters reported.
Pill argued that acting sooner could help prevent temporary increases in inflation from becoming more persistent. A timely rise in Bank Rate could also reduce the risk of businesses and workers adjusting wages and prices in ways that reinforce higher inflation, he said in comments prepared for delivery to the Edinburgh Chamber of Commerce on Thursday, Reuters said.
