The Bank of England must raise interest rates or risk losing market confidence, the central bank's chief economist has said.
In a speech in Edinburgh, Huw Pill said he was "uncomfortable" with holding interest rates steady to ******* s the impact of the Iran War. He warned that investors could lose faith in the Bank's ability to tackle inflation.
He said: "The danger exists that the market may lose confidence that expected Bank Rate increases will be implemented just at the time as it starts to entertain doubts that the MPC [Monetary Policy Committe] [sic] ability or willingness to bring inflation down to target."
The warning from Mr Pill comes after the Bank of England's Monetary Policy Committee (MPC) voted 6-3 to hold interest rates at 3.75pc in July. It was held despite inflation standing at 2.9pc, above the Bank's 2pc target.
Unlike the majority of his colleagues, Mr Pill voted to increase the bank rate to 4pc
#bank #inflation #market
In a speech in Edinburgh, Huw Pill said he was "uncomfortable" with holding interest rates steady to ******* s the impact of the Iran War. He warned that investors could lose faith in the Bank's ability to tackle inflation.
He said: "The danger exists that the market may lose confidence that expected Bank Rate increases will be implemented just at the time as it starts to entertain doubts that the MPC [Monetary Policy Committe] [sic] ability or willingness to bring inflation down to target."
The warning from Mr Pill comes after the Bank of England's Monetary Policy Committee (MPC) voted 6-3 to hold interest rates at 3.75pc in July. It was held despite inflation standing at 2.9pc, above the Bank's 2pc target.
Unlike the majority of his colleagues, Mr Pill voted to increase the bank rate to 4pc
#bank #inflation #market
2 months ago
