Peel: Policymakers should not overlook inflation risks and support raising interest rates to 4%
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Bank of England Chief Economist Pill voted in favor of raising interest rates to 4%, citing concerns that inflation will remain persistently above the Bank of England's 2% target. Pill stated that policymakers should not take the current inflation situation lightly. The Middle East conflict has led to rising energy prices, creating an upward risk for the inflation rate. Pill believes that an inflation rate 1% above the target should still be considered problematic, and expressed concern that after inflation once reached 11%, the market now regards 3% inflation as acceptable.
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