Bank of England’s Pill says central banks must focus on inflation

Bank of England Chief Economist Huw Pill emphasized on Thursday that central banks must maintain their focus on inflation, despite rising bond yields globally. Pill, speaking at a conference organized by Eurasia Group and LSEG, stated that inflationary pressures are currently present and must be addressed. Monetary policy should be resolutely directed towards combating inflation, he added.

Pill, along with two other Monetary Policy Committee members, voted for a September interest rate hike. While a majority of the MPC favored maintaining the status quo, waiting for clearer inflation impact signs due to the Iran war, Governor Andrew Bailey and others suggested a rate increase might be imminent.