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Thu, 09 Jul 2026

Thu, 09 Jul 2026 Interest rates may need to rise this year, says Bank of England economist

Chief economist at the Bank of England says slower growth and inflationary pressures mean rate rise needed

* Huw Pill, the Bank of England's chief economist, believes interest rates may need to increase this year to control rising prices.
* He said the economy has a "speed limit" and that inflation is above target at 2.8%, compared to the 2% target.
* Pill stated that productivity in the UK has slowed down and is a particular problem in Wales, where it is 15% lower than the UK average.
* Improving productivity through better infrastructure and education can help raise living standards.
* The Bank of England's interest rate decisions affect the cost of mortgages, borrowing, and savers' returns on their money.
* Pill acknowledged that making difficult economic decisions is a challenge for politicians and that some countries have had to go through "a lot of pain" before improving their economies.