Investing.com -- Huw Pill, the Chief Economist at the Bank of England (BoE), on Tuesday expressed his concern about the potential for inflation in the United Kingdom (TADAWUL:4280) to exceed the central bank’s expectations.
He suggested that this could necessitate maintaining interest rates at levels higher than what investors anticipate.
During a conference held by the London School of Economics, Pill discussed the possibility of inflation remaining at levels that exceed the BoE’s 2% target.
If this were to occur, Pill indicated that a more assertive or sustained response from monetary policy may be required to return to the target within a reasonable cycle.
Pill’s comments underscore the central bank’s focus on managing inflation rates in the U.K., and the potential need for more aggressive or persistent monetary policy actions to maintain economic stability.