London | The Bank of England has set the scene for a sharp increase in interest rates in early November, saying the government’s debt-funded tax-cutting spree will require a “significant monetary policy response”.

BoE chief economist Huw Pill – one of the bank’s most influential officials, and a member of its rate-setting committee – said he and his colleagues would not rush into an emergency rate increase, and would instead “rely on communications” to try to calm markets.