Bank of England economist warns against inaction on inflation risks

Tuesday 24 March 2026 - 14:30

The chief economist of the Bank of England, Huw Pill, has emphasized that economic uncertainty should not delay action against rising inflation risks.

Speaking at an international central banking event, Pill highlighted that ongoing geopolitical tensions, particularly in the Middle East, are contributing to increased pressure on prices. He warned that these developments could create lasting inflationary effects if not addressed promptly.

Pill noted that central banks must remain proactive, even in uncertain conditions. While acknowledging the challenges of predicting economic outcomes, he stressed that policymakers cannot afford to wait for complete clarity before taking necessary measures.

He also reiterated concerns about previous monetary decisions, suggesting that interest rates may have been reduced too quickly in the past year. According to him, authorities must be prepared to adjust policy if inflationary pressures continue to build.

The remarks reflect growing concern among policymakers about maintaining price stability in a volatile global environment, where energy costs and geopolitical risks are increasingly influencing economic trends.