Following the Bank of England's decision to raise interest rates by 0.5 percentage points to 4%, the chief economist of the Bank of England, Huw Pill, has cautioned against raising borrowing costs too high.
He warned of the importance of doing "too much", despite recognising that UK inflation was "much too high".
The Bank's governor, Andrew Bailey, also remarked that inflation seemed to have turned a corner after falling for two months but that interest rate rises of almost 400 basis points in little more than a year would still take effect.
Huw Pill, the chief economist of the Bank of England, has cautioned about the potential risk of raising interest rates too high.
His comments came after the Bank of England hiked interest rates by 0.5 percentage points to 4%, the highest since 2008.
According to Pill and Governor Andrew Bailey, the full impact of previous interest rate hikes has not yet been felt in the UK economy, which had already risen by almost 400 basis points over a little more than a year.
Pill's concern was that there might be negative effects such as an economic slowdown or an increase in mortgage defaults.
Therefore, the Bank may be nearing the end of a prolonged period of rate rises given the recent changing language in their statements.
Bailey pointed out that inflation, while still above 10%, appeared to have turned a corner after falling for two months.