BoE chief economist hints at rate rise but new Covid variant fuels doubts

Analysts say prospect of interest rate rise has diminished despite Huw Pill's address to a CBI conference

The Bank of England appears to have move a step closer towards increasing the cost of borrowing next month after its new chief economist, Huw Pill, said the UK's recovery from the pandemic was strong enough for the central bank to take policy action", despite fears over the new Covid strain.

Pill, a member of theBank's nine-strong monetary policy committee (MPC), indicated he was preparing to vote in favour of an increase in interest rates on 16 December after official figures suggested concerns about a jump in unemployment at the end of the furlough scheme had proved unfounded.