PILL, the Bank of England's chief economist, said on Thursday at an IMF meeting in Bangkok that investors should not interpret any future rate increase as the start of a renewed, stepwise tightening cycle like 2022–23, saying the current shock is different. He warned of a possible “hidden catch‑up effect” in which rising prices prompt higher wage demands and could sustain inflation, and said policy may need to remain restrictive for longer to counter that risk.

2026-10-15

PILL, the Bank of England's chief economist, said on Thursday at an IMF meeting in Bangkok that investors should not interpret any future rate increase as the start of a renewed, stepwise tightening cycle like 2022–23, saying the current shock is different. He warned of a possible “hidden catch‑up effect” in which rising prices prompt higher wage demands and could sustain inflation, and said policy may need to remain restrictive for longer to counter that risk.

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