LONDON, Oct 8 (Reuters) – Bank of England Chief Economist Huw Pill said on Thursday that central banks had to keep their focus on fighting inflation against the backdrop of rising bond yields in financial markets around the world.
“I think (we are) in an environment where there are inflationary pressures at present, and we need to address them, we need to make sure monetary policy is resolutely on that,” Pill told a conference organised by consultancy Eurasia Group and LSEG.
“We need to ensure the financial system is functioning to allow the transmission of monetary policy to make that happen.”
Pill and two other Monetary Policy Committee members voted to raise interest rates in September. A majority on the MPC preferred no change as they awaited clearer signs of the impact of the Iran war on inflation but Governor Andrew Bailey and others said the time for a rate hike might be approaching.
(Writing by William Schomberg; editing by David Milliken)
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