BOE’s Pill Says Strong Iran Price Pressures Warrant Rate Rise

The Bank of England should raise interest rates to fight off strong inflation spillovers from the Iran energy shock, according to its chief economist who set out his case for active policy in an unpredictable world.

Huw Pill, one of the most hawkish voices on the BOE’s Monetary Policy Committee, warned that uncertainty around when the conflict will end and how it will impact the UK economy is not a reason for inaction. He called for a “modest but prompt” increase in borrowing costs, arguing that the economy needs more restriction in the system than it did two months ago.