Finance
Bank of England Chief Economist Criticises Calls to 'wait and See' on Policy
Published by Global Banking & Finance Review®
Posted on April 17, 2026
3 min readLast updated: April 17, 2026
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Bank of England Chief Economist Huw Pill criticised the “wait and see” approach to policy amid the Iran war, warning that inaction may be misread as neutrality and could allow inflation to entrench itself.
Bank of England chief economist criticises colleagues' 'wait and see' messaging
Chief Economist Huw Pill's Perspective on Monetary Policy
By Andy Bruce and Suban Abdulla
Criticism of 'Wait and See' Approach
April 17 (Reuters) - Bank of England Chief Economist Huw Pill on Friday criticised his colleagues' "wait and see" messaging on keeping policy on hold while the Iran war plays out, and said tackling inflation should be its main focus against other trade-offs.
Contrast with Governor Andrew Bailey's Stance
His comments contrasted with those of BoE Governor Andrew Bailey, who said this week that the central bank should not "rush to judgements" in setting policy.
Bailey told Reuters this month that the BoE needed to keep a clear eye on risks to growth and jobs as well as inflation when making their next decision on rates.
Pill's Concerns About Policy Communication
Pill said a wait-and-see approach could be mistaken for looking neutral on the threat of higher inflation, even if holding interest rates represents a tightening of policy against previous assumptions of interest rate cuts.
Potential Risks of Inaction
"If you're waiting and seeing and you don't see, then you've just waited," Pill told a roundtable event hosted by Barclays.
"And I'm not sure waiting is necessarily the appropriate response to the sort of inflationary dynamics which have the potential, at least, to have some self-sustaining momentum."
Need for Clearer Communication from the MPC
He said the Monetary Policy Committee needed to be clearer that it had held interest rates because that was the appropriate level of monetary tightness for the economy, not because it was simply waiting and seeing.
Background and Pill's Policy Priorities
Before the start of the war in Iran in late February, Pill had consistently argued for a slower pace of interest rate cuts, citing reservations about the persistence of inflation pressure in Britain's economy.
He said on Friday that tackling this should be the BoE's top priority.
Emphasis on Inflation Targeting
"In my thinking, for all the discussion about trade-offs, which is there and we have to take into account, I think the primacy of keeping inflation towards target and keeping it there needs to be emphasised," Pill said.
Market Reaction
Investors on Friday moved to price in only one BoE quarter-point interest rate hike after Iran said the Strait of Hormuz would open during the current ceasefire, from between one and two on Thursday.
(Reporting by Andy Bruce; Editing by Muvija M)
Key Takeaways
- •Pill argued that waiting risks missing inflationary momentum, which could become self‑sustaining without timely action.
- •He emphasised that holding interest rates—even without raising them—amounts to tightening relative to expectations of rate cuts.
- •The Iran war has triggered a sharp energy‑price shock, prompting the BoE to hold its base rate at 3.75 % and reassess inflation risks amid worsening growth forecasts.
Frequently Asked Questions about Bank of England chief economist criticises calls to 'wait and see' on policy
1What did Huw Pill criticize regarding policy decisions?
He criticized calls for the Bank of England to 'wait and see' before making changes to its policy.
2Why is a 'wait and see' approach controversial?
Pill argued it could be seen as neutrality toward inflation risks, even if rates are held steady instead of being cut.
3How does Huw Pill view the current inflation threat?
He believes inflationary dynamics could develop self-sustaining momentum, requiring proactive policy.
4What event was Huw Pill speaking at?
He spoke at a roundtable event hosted by Barclays.
