The Bank of England’s Chief Economist Huw Pill summed up the dilemma facing not just the Bank of England, but other G7 Central Banks as well. He warned of larger interest rate hikes being needed but is also concerned about a slowing economy.

His message was that high and rising inflation needs to be tackled by tighter monetary policy, but that will see the economy produce no increase in growth.

He agrees with the Bank’s Governor that bringing inflation down is and indeed should be the most important focus of its current policy.

An increase in the size of hike at the next meeting, compared to those that have come before since the Bank started tightening policy last December, is certain for next week’s MPC meeting.

Andrew Bailey has been providing advance guidance that a fifty-point hike is on the cards, with core inflation continuing to rise as the headline begins to level off.

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