According to a leading economist, the Bank of England must do a “complete job” in combating inflation.

The head economist of the Bank of England has stated that those who determine interest rates must “see the job through” in order to bring high inflation back to target.

The South African Reserve Bank’s chief economist, Huw Pill, said it was crucial to achieve a “lasting return to target” despite the danger of rising rates too far and harming growth and employment. He was speaking at a research conference the bank organized in Cape Town.

At 5.25%, the bank has raised interest rates 14 times in a row. It is widely anticipated that the bank will vote in favor of another increase at its upcoming meeting on September 21.

Although it recently peaked at an alarming 11.1% in late October, inflation has since moderated to 6.8%, still exceeding the Bank’s 2% target.

The MPC (Monetary Policy Committee) must complete the task and ensure that inflation returns to the 2% target over the long term, according to Mr. Pill.

He stated that there was a chance of an excessive increase in interest rates.

There is a risk of doing too much and causing unnecessary harm to employment and GDP now that policy is in a restrictive zone, he warned.

The focus for now, he continued, “remains on making sure that we are, in the words of the MPC’s last statement, sufficiently restrictive for long enough to make sure that we have that lasting return to target.”

So-called core inflation has remained “stubbornly high” despite recent dramatic drops in inflation, according to Mr. Pill.

The Bank is still under a lot of pressure to keep up the recent interest rate increases in order to significantly reduce inflation.

The Institute for Public Policy Research (IPPR) think tank’s experts issued a warning earlier this month, stating that there was a “very real risk” that the UK might experience a recession as a result of the rate hikes’ impact on the property market, consumer spending, and business investment.

According to the Bank’s prediction, inflation is expected to drop to about 4.9% in the final three months of the year.

Official data indicates that wages increased at a record rate for the three months to June, but rising earnings are raising concerns that inflation will be tougher to control.

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