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Bank of England's Pill says interest rates will need to rise - Finance news and analysis from Global Banking & Finance Review
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Bank of England's Pill says interest rates will need to rise

Published by Global Banking & Finance Review

Posted on July 9, 2026

1 min read

· Last updated: July 9, 2026

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Finance Banking Economy interest rates United Kingdom

Bank of England’s Huw Pill Indicates Interest Rate Increase Likely Soon

Bank of England’s Stance on Interest Rates

Huw Pill’s Comments on Inflation and Rate Hikes

July 9 (Reuters) - Bank of England Chief Economist Huw Pill said interest rates will need to rise to keep inflation pressure in check.

Outlook for the Coming Year

Asked on BBC's "Walescast" programme on Thursday if rates would need to rise in the coming year, Pill said: "The short answer is yes.

Concerns About Economic Overheating

"I am concerned that we've been running the economy a little bit hotter than the supply side," Pill said.

Recent Monetary Policy Committee Actions

Pill was one of two members of the nine-strong Monetary Policy Committee who voted to raise interest rates from 3.75% last month. The next decision is due on July 30.

Upcoming Policy Decisions

(Reporting by Andy Bruce; Editing by Mark Porter)

Key Takeaways

  • Huw Pill believes the economy is running ‘a little bit hotter than the supply side’, implying further tightening may be required to temper inflationary pressure. (bankofengland.co.uk)
  • In the June 17 MPC meeting, he was one of two dissenters (with Megan Greene) voting to raise Bank Rate from 3.75% to 4%, underscoring his hawkish stance. (bankofengland.co.uk)
  • With inflation at 2.8% in May and risks from persistent energy-price pass‑through, the BoE holds rates but signals readiness to act by the next meeting due July 30. (bankofengland.co.uk)

References

Frequently Asked Questions

Who is Huw Pill?
Huw Pill is the Chief Economist of the Bank of England and a member of the Monetary Policy Committee.
Why does the Bank of England plan to raise interest rates?
The Bank of England plans to raise interest rates to keep inflation pressures under control.
When is the next Bank of England interest rate decision?
The next interest rate decision is due on July 30.
How many members are on the Bank of England's Monetary Policy Committee?
There are nine members on the Bank of England's Monetary Policy Committee.
What was the latest interest rate that was voted on?
The most recent rate considered was an increase from 3.75%.

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