Central Banks
Bank of England Chief Economist Signals ‘Significant’ Rate Rises
- Huw Pill says fiscal stimulus will add to demand and inflation
- Warns that credibility in economic framework must be preserved
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Bank of England Chief Economist Huw Pill signaled interest rates are likely to rise sharply in November to fight inflation and respond to the fiscal stimulus coming from the government.
He said the huge tax cuts and energy subsidies promised by Prime Minister Liz Truss’s new government would probably boost the economy, echoing remarks made by BOE Deputy Governor Dave Ramsden last week. He added that it’s too early for the central bank to “declare victory” on holding expectations about future price increases to its 2% target.