Bank of England Chief Economist Huw Pill stated on Tuesday that there is a narrow path between fighting soaring inflation on one side and a recession on the other.
Speaking at the Institute of Chartered Accountants in England and Wales (ICAEW) London and East Economic Summit, Pill added that the recent interest rate hikes will take from a year to a year and a half to affect inflation and that additional tightening of the monetary policy should be expected in coming months.
The exchange rate should be considered when assessing inflation pressures and the central bank will be prepared to act if they become persistent, Pill stressed.
