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 add

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.