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 unrea

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.