‘Significant’ interest rate rise to come, Bank of England chief economist suggests – By Sarah Taaffe-Maguire (Sky News) / Sept 27, 2022
The Bank asserted yesterday that it is happy to push the brake on the economy by raising interest rates while the government presses the accelerator by cutting taxes.
The Bank of England’s chief economist has said the government’s mini-budget, which led to the pound falling to a record low against the dollar, will require “a significant monetary policy response”.
Speaking at the International Monetary Policy Forum, Huw Pill reasserted the Bank of England’s willingness to act to rein in inflation.
“I think it’s hard not to draw the conclusion that all this will require a significant monetary policy response. Let me leave it there,” the member of the Monetary Policy Committee (MPC), that sets interest rates, said.
There will be “challenging times” to bring inflation back to the regulator’s 2% target, Mr Pill said. But he vowed to stick to that target: “Let me assure you, the MPC has a very good understanding of its mandate to maintain price stability and its remit to return inflation to the 2% target.”
