Bank of England Chief Economist Huw Pill said stronger UK growth data supports the case for higher interest rates to bring inflation back to target. Pill voted for a hike at the July meeting but was outvoted 6-3, as the Monetary Policy Committee left rates unchanged.
Growth data eases downturn fears
Pill pointed to second-quarter growth figures showing a 0.4% expansion as evidence the UK is avoiding a sharp economic decline. He told the Wall Street Journal: "This goes in the direction of reassuring me that we're not entering a sharp downturn."
That growth strengthens his case for continued rate hikes. Pill was one of the members who voted to raise rates at the MPC's most recent meeting.
Inflation track record drives his stance
He was outvoted 6-3 at the July meeting, where the MPC opted to hold rates unchanged. Still, he has pushed for tighter policy throughout his tenure on the committee.
Only three of the 59 months Pill has served on the MPC saw inflation at or below the Bank's target level, underscoring why he continues to back higher rates.
Source: Investing.com
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