Inflation could top 5% in the months ahead, the Bank of England’s new chief economist has warned.
The remarks by Huw Pill in an interview with the Financial Times are likely to be seized upon as the latest evidence of Britain’s cost-of-living crisis.
Mr Pill also told the FT that the Bank would face a “live” decision on whether to raise interest rates at its rate-setting meeting next month though he declined to say which way he would cast his vote.
Huw Pill said the Bank faced a ‘live’ decision on interest rates
That follows recent remarks by Mr Pill’s boss, BoE governor Andrew Bailey, that the Bank may “have to act” over inflation – comments which prompted markets to price in a 90% chance of a rate hike in November.
The Bank rate is currently at the historic low of 0.1% after being slashed in the early stages of the coronavirus crisis.