Interest Rate Hike Looms: The UK Economy's Next Big Test The Bank of England's chief economist, Huw Pill, has warned that interest rates may need to rise this year to combat inflation.
As one of nine policymakers who decide on interest rates, Pill is no stranger to controversy. His assertion that rising prices require a higher "speed limit" for economic growth highlights the UK economy's fragility.
Inflation stands at 2. 8%, above the Bank's target of 2%. The current situation is similar to the pre 2008 financial crisis, when the Bank raised interest rates to combat soaring prices.