Bank of England chief economist Pill warned further rate rises may be needed
beyond a likely December increase. He said last week’s 25bp move to 4% was an
important step but ‘more to do,’ citing the risk that high energy costs could
trigger second‑round effects into wages and corporate pricing. Pill expects
evidence next year that could prompt additional tightening, reaffirmed the BOE
will act to return inflation to its 2% target, and said market pricing of Bank
Rate near 5% in 2027 is not unreasonable—the risks he sees support some of the
priced‑in hikes but he would not confirm they justify the full market-implied
path.
