Bank of England chief economist Pill said he voted at the past two Monetary
Policy Committee meetings to raise Bank Rate to 4%, citing concern that
inflation remains above the Bank’s 2% target and could rise further if Middle
East-related energy prices increase. He warned policymakers should not be
Complacent, saying inflation one percentage point above target would
historically be treated as a problem and that, after a prior peak near 11%, it
is risky to start viewing 3% as acceptable. Pill added that voting against the
majority is difficult; his dissent was not for effect and, while he generally
tends to support the committee view even when doubtful, he recorded a contrary
vote.
