In an interview yesterday, Huw Pill, the Chief Economist of the Bank of England, reiterated his belief that short-term interest rates in the UK will continue to rise as the Central Bank remains committed to bringing inflation under control.

He went on to say that he and his colleagues on the Monetary Policy Committee see inflation as potentially the most serious danger facing the economy and although fuel and energy prices appear to be moderating which will see headline inflation fall, there remain a number of areas, like accommodation rents that are rising at a record pace. This will see core inflation continue to raise concerns.

Pill affirmed the commitment of the MPC to fulfilling its mandate to return inflation to its 2% target. This is the core commitment of the Central Bank, and it is prepared to do whatever is necessary to achieve this.

The global economy is coming out of a long period of supportive monetary policy and all G7 Central Banks have a shared commitment to fight inflation, although the causes of higher prices vary as do the methods other than monetary policy used to reduce it.

There are common themes like the war in Ukraine that have driven prices higher over the past year that have conceded with the end of the Pandemic, although the infection rate in China and its withdrawal of travel restrictions are still a concern.

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