The Bank of England is facing a challenging problem on economic policy as inflation continues to exceed the target even as the recovery remains uneven, according to Bloomberg. Societe Generale chief U.K. economist Brian Hilliard said on Friday that the central bank must raise interest rates by the most since it gained independence in 1997 in order to maintain its credibility, claiming that there was “an urgency” around “more substantial” reaction to elevated inflation. Inflation reached 3.3% in November, and is expected to remain above the 2% target set by the bank for the rest of the year.

Policymakers have split on whether to raise rates while the recovery remains fragile, with former official David Blanchflower voicing a concern held by some on the Monetary Policy Committee that a rate increase in the face of austerity cuts would be the “worst nightmare” for the economy. Separately, economists expect the central bank to maintain its £200 billion bond-purchase program, with surveys showing a unanimous position among economists that the program will be unchaged on Jan. 13, along with steady interest rates.

Click here to read the story on the BOE interest rates from Bloomberg News.

Click here for coverage of the bond purchase program from Bloomberg News.