The central bank's chief economist signalled in a speech it could not be 'indifferent' over the pound's slump.
The Bank of England has hinted it is prepared to ramp up interest rates in response to the recent slump in the value of the pound.
A pledge of further tax cuts by Chancellor Kwasi Kwarteng and worries about higher interest rates knocked investors' confidence and saw the pound touch a record low against the dollar on Monday. Mr Pill, who sits on the Monetary Policy Committee , which sets interest rates, said on Tuesday: "I do want to flag clearly at this point that in my view the combination of fiscal announcements that we've seen will act as a stimulus."
Speaking in a personal capacity, he added that there were "challenging times" ahead for the Bank as it tried to bring inflation, which tracks how the cost of living changes over time, back to its target of 2%. He played down the idea of an emergency hike - but the Bank may yet find its hand forced if the markets remain unsettled over a lack of clarity over Chancellor Kwasi Kwarteng's plans.
The government's own costs for borrowing soared by £14bn, the Resolution Foundation think-tank estimates - money that could have been earmarked for public services or to fund tax cuts.
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