BoE economist Huw Pill says 0.4% UK growth supports higher rates

Bank of England Chief Economist Huw Pill said stronger-than-expected UK growth strengthened the case for higher borrowing costs, arguing the economy's 0.4% quarter-on-quarter expansion in the second quarter showed Britain was not heading for a sharp downturn. Pill was among three Monetary Policy Committee members who backed a rate increase in July but were outvoted 6-3 in favor of holding rates steady. He has also stressed the persistence of inflation, noting that only three of the 59 months since he joined the MPC had data at or below target. His latest remarks underscore a hawkish split inside the Bank of England as policymakers weigh resilient activity against price pressures, with market participants looking to the September MPC meeting for signs of further monetary tightening.

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