Bank of England Chief Economist Huw Pill said policymakers are aware of the hardship that soaring interest rates inflict on households and must find a “balance” on fighting inflation without damaging the economy too much.
(Bloomberg) — Bank of England Chief Economist Huw Pill said policymakers are aware of the hardship that soaring interest rates inflict on households and must find a “balance” on fighting inflation without damaging the economy too much.
Speaking to the South Wales Argus on a visit to Newport, the official who sits on the nine-member Monetary Policy Committee said the BOE was “committed to doing everything we can to bring inflation back down to its 2% target.”
At the same time, he understood the consequences of raising rates to hold back price increases across the economy. He spoke as investors bet the central bank will keep raising rates, opening the risk that borrowing costs will hit 6%, the highest in 23 years. That’s driving up the price of servicing mortgages, piling further pressure on household budgets.
“I fully recognize the difficulties many people face owing to the rising cost of living but also the pressures created by measure we are taking to bring down inflation, such as making mortgages more expensive,” Pill said, according to an article published by the Argus on Tuesday.
“Striking a balance between ensuring inflation returns to target, and containing the costs that measures needed to ensure that return impose on already vulnerable households and businesses, is difficult. But we are determined to get it right,” he said.
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