The Bank of England will raise interest rates again, its chief economist has said.
Huw Pill said the risk of inflation becoming “embedded” in the economy through higher wages and prices meant that the bank’s monetary policy committee would commit to another hike.
Last week saw it raise interest rates to 3% the highest level since 2008, with the biggest single tightening in 33 years.
Dropping the broadest possible hint that the MPC would use its next meeting in December to push interest rates higher, Pill said: “I think there is more to do. We have done some, that is what we did last week. And there is still more to do.”
The bank has warned that the UK would suffer its longest recession in a century if rates were raised as high as 5.25%.
