Huw Pill, the chief economist at the Bank of England, said the path was clear for the British central bank to proceed with its plan to raise interest rates for the first time since the coronavirus pandemic wreaked havoc on the global economy last year.

"In my view, the ground has now been prepared for policy action," Pill said in the text of a speech to the Confederation of British Industry on Friday.

While avoiding any indication that the Bank of England will raise borrowing rates at its December meeting, Pill stated that recent economic data showed that Britain's economic recovery from its pandemic slump was continuing, supply chain issues were causing inflationary pressure, and the labor market was tight.

Huw Pill | Bank of England

That meant he agreed with the Bank of England's prediction earlier this month that interest rates would have to rise in the "coming months." "In other words, given where we stand in terms of data and analysis, I view the likely direction of travel for monetary policy from here as pretty clear," Pill said.

However, he stated that there is still uncertainty in the economic picture, and thus the BoE cannot provide precise guarantees on what it will do with interest rates.

The Bank of England sent shockwaves through financial markets on November 4 when it maintained the Bank Rate at its record low of 0.1%. Investors interpreted comments made by Governor Andrew Bailey in late October as a signal that a rate hike in November was on the way.

Pill and Bailey were two of the seven members of the Bank of England's nine-member Monetary Policy Committee who voted against changing the Bank Rate this month.