‘We have further to go,’ says Huw Pill after increase to 4% last month as Bank seeks to tackle rising inflation

The Bank of England will probably need to raise interest rates next month and again in early 2027 to combat rising inflation, its chief economist has said.

Signalling a sharp rise in mortgage payments for an estimated 2.3 million homeowners who will have to refinance their loans next year, Huw Pill said that while the decision to nudge interest rates from 3.75% to 4% earlier this month was a “significant step” towards getting monetary policy into a better place, “we ⁠have further to go”.