The Guardian reported that the Bank of England will probably need to raise interest rates next month and again in early 2027 to combat rising inflation, according to its chief economist. The outlet said Huw Pill made the remarks after the Bank increased its rate to 4% last month, and he said, “We have further to go.”

The Guardian reported that the expected increases would bring a sharp rise in mortgage payments for an estimated 2.3 million homeowners who will have to refinance their loans. The outlet's report, in the form available for this story, does not say when those refinancings fall due, nor does it give further figures on the Bank's plans.

The Guardian tied the expected rate increases to the Bank's effort to tackle rising inflation, which the outlet describes as the reason for the signal. Phillip Inman wrote the report, which was published under the outlet's business coverage.

This account is limited to the points attributed to The Guardian above and does not add detail from other sources.

Sources: The Guardian: Interest rate rises likely in coming months, Bank of England economist says.