Bank of England Chief Economist Calls for Vigilance on Inflation

Huw Pill, the Chief Economist at the Bank of England, has emphasized the need for caution in light of an anticipated inflation uptick this year. Highlighted in the bank's recent monetary decision, Pill remains hopeful that this surge won't lead to a prolonged price spiral. However, he pointed out that the United Kingdom's core inflation rate is still above 3%, underscoring the importance of vigilance.

Monetary Policy Must Remain Restrictive

Pill acknowledged that to fully contain price pressures, monetary policy must maintain a certain level of restriction. He reiterated the existence of inflation risks on both sides and warned that premature easing could jeopardize the progress made so far.