"There's no quick fix, and that lack of a quick fix means some
patience will be required," Pill told a conference in Bristol
hosted by the Economics Observatory and the Festival of
Economics.
Pill said he had not made up his mind whether he would vote for
a rise in interest rates to 0.25% from 0.1% next month, which
financial markets price in as a near-certainty after data
earlier this week showed inflation had risen to a 10-year high
of 4.2%.
BoE Governor Andrew Bailey and Pill have both said interest
rates will need to rise to tame inflation, but markets were
wrong-footed earlier this month when the BoE's Monetary Policy
Committee decided to wait for more labour market data before
deciding on a move.
Pill said policy communication was getting more complicated due
to two-sided risks to growth and inflation, in contrast to the
heavy downside risks during the COVID-19 pandemic.
The BoE wanted to "train" markets to focus more on the
medium-term outlook and two-sided risks, said Pill, a former
Goldman Sachs economist, but some volatility was unavoidable
given uncertainty about the precise timing of rate rises.
(Reporting by David Milliken, editing by Andy Bruce)
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