Key facts
- Bank of England Chief Economist Huw Pill stated central banks must focus on fighting inflation.
- Pill emphasized the need for monetary policy to be resolutely focused on addressing inflationary pressures.
- He noted that the financial system must function to allow monetary policy transmission.
- Pill and two other MPC members voted to raise interest rates in September.
- The majority of the MPC preferred no change in September, awaiting clearer signs of the impact of the Iran war on inflation.
Bank of England Chief Economist Huw Pill said on Thursday that central banks must keep their focus on fighting inflation, particularly against the backdrop of rising bond yields globally. Speaking at a conference organized by Eurasia Group and LSEG, Pill emphasized that in an environment with inflationary pressures, monetary policy needs to be resolutely focused on addressing them.
He also highlighted the importance of the financial system functioning effectively to allow for the transmission of monetary policy. Pill, along with two other members of the Monetary Policy Committee (MPC), had voted to raise interest rates in September. However, a majority on the MPC opted for no change, preferring to await clearer signs of the impact of the Iran war on inflation. Governor Andrew Bailey and others on the committee indicated that the time for a rate hike might be approaching.