The Bank of England’s chief economist has said interest rates should be raised to tackle threats to inflation sparked by the Middle East energy shock, saying he was “uncomfortable with a ‘wait-and-see’” approach of fellow policymakers.

Huw Pill reiterated his concerns about the risks of leaving interest rates unchanged while waiting for clearer signs of how the Iran war has affected inflationary dynamics in the UK economy.

He was one of two members on the nine-person Monetary Policy Committee (MPC) to vote to raise interest rates in July, meaning he was outvoted by a majority preferring to keep rates at 3.75%, including governor Andrew Bailey.

Mr Pill said in a speech at the Edinburgh Chamber of Commerce: “There is ample reason to doubt that we will see a definitive resolution of the multiple and profound uncertainties we currently face any time soon.

“In my view, in this environment we cannot wait for uncertainties to resolve themselves before acting.

“It is now six months since the onset of conflict in the Middle East.

“How or when the conflict will be resolved and, more importantly, the magnitude of its implications for UK inflation, remain unclear: essentially as unclear as they were six months ago.

“Given all this, I am uncomfortable with a ‘wait-and-see’ framing of the MPC’s current decisions over bank rate.”

Mr Pill said he was concerned that keeping interest rates on hold may signal a “bias to the status quo” in terms of decision-making on the MPC which risks letting monetary policy fall behind in addressing emerging inflationary pressures.

He said raising interest rates to 4% would deliver a “clear and unambiguous signal of the MPC’s willingness and ability to address upside risks stemming from events in the Middle East”.

“Raising bank rate on this basis need not be the start of a prolonged and aggressive series of increases,” he said.

“Indeed, implemented and communicated effectively, a prompt increase in bank rate may serve to head off some of the potential insidious ‘catch-up’ nominal dynamics that threaten to make temporary departures of inflation from target more persistent.”