BoE’s Pill says more rate hikes to come if inflation persists

Bank of England Chief Economist Huw Pill said the central bank would need to raise interest rates further if inflation persists, a day after the BoE raised rates for the first time since the start of the COVID-19 pandemic.

Asked on CNBC television if there would be “a lot more rate hikes to come,” if inflation remained at its current level, Pill replied: “Well I think that’s true.”

“Underlying, more domestically generated inflation here in the UK, probably centred around wage pressures in a tightening labour market, are going to prove more persistent through time,” he added.