London — BoE's Huw Pill Says Further UK Interest Rate Rises Needed

Bank of England chief economist Huw Pill said further increases to UK interest rates are needed to bring inflation under control, even after the central bank's Monetary Policy Committee raised its benchmark rate last week, according to the Financial Times.

What did Huw Pill say about UK interest rates?

Pill described last week's quarter-point increase, which took the Bank Rate to 4%, as a "significant step," the Financial Times reported. He added that there was "further to go" on borrowing costs, signaling that the Monetary Policy Committee is not finished tightening policy even after a year of successive rate increases.

"Significant step" ... "further to go" — Huw Pill, Bank of England chief economist, via the Financial Times

What rate did the Bank of England set last week?

The Monetary Policy Committee lifted the Bank Rate by a quarter of a percentage point to 4%, the Financial Times reported, citing Pill's remarks on the decision. The increase extends a run of rate rises the central bank has used to try to slow price growth across the UK economy.

Why does Pill think rates need to rise further?

The Financial Times account does not detail the specific inflation data or forecasts Pill cited beyond his characterization of the move as a step rather than an endpoint. His comment that there is "further to go" indicates the committee's current assessment is that borrowing costs at 4% are not yet sufficient to bring inflation back to the Bank's target, based on the reported remarks.

What does "further to go" mean for borrowers?

Pill's language points toward additional increases in the Bank Rate at future Monetary Policy Committee meetings rather than a pause, according to the Financial Times. For households and businesses, a rising Bank Rate typically feeds through to mortgage rates, business loans and savings returns, though the Financial Times report does not specify a timeline or target level for where Pill expects rates to settle.

What happens next for BoE policy?

The Financial Times report frames Pill's comments as guidance to markets and borrowers ahead of the Monetary Policy Committee's coming decisions, without citing a date for the next vote. His remarks suggest the committee's internal debate is still weighted toward further tightening rather than holding rates steady at 4%, based on what the Financial Times reported him saying.

The full remarks and additional context on Pill's position are available via the Financial Times.