Bank of England Chief Economist Signals Further Rate Hikes in 2027

Bank of England Chief Economist Huw Pill indicated that further interest rate increases will likely be necessary in 2027, in addition to a potential hike at the upcoming December meeting, to combat inflation. The central bank had already raised rates to 4% from 3.75% in November. Pill noted that inflation risks, including potential wage effects from higher energy costs, could necessitate more tightening.