EconomyUnited Kingdom

Bank of England chief economist expects more interest rate rises

Huw Pill, the Bank of England's chief economist, expects the bank to raise its key rate again soon to fight rising inflation. Households with mortgages due for renewal next year are likely to face higher payments.

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Huw Pill, the Bank of England's chief economist, expects the bank to likely raise its interest rate again next month, with another increase coming in early 2027. Earlier this month the bank moved its main rate up from 3.75% to 4%, a change Pill described as an important move toward a more suitable policy stance.

About 2.3 million homeowners will have to replace their current home loans with new ones next year, which Pill linked to a sharp rise in mortgage payments. The bank's latest forecasts show inflation rising to 5% next spring, and the bank's next rate decision is due on 17 December.

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Huw Pill, chief economist, Bank of England

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