Bank of England Deputy Governor Dave Ramsden said he would be prepared to support an interest rate increase if "upside pressures" on inflation continue to build.
Speaking in London on Monday, Ramsden echoed concerns raised last week by fellow Deputy Governors Sarah Breeden and Clare Lombardelli that higher energy prices could trigger a wage-price spiral.
Earlier this month, the BOE's Monetary Policy Committee voted 6-3 to keep rates unchanged at 3.75%, but warned that inflation could peak around 4%, far above previous expectations and at a level that may require a policy response.
Investors currently expect the BOE to raise rates by 25 basis points at its November meeting.
Ramsden said he remains focused on the threat to prices from high energy costs caused by the Iran war, and will look for evidence of second-round effects, including domestic food prices and the upcoming survey of employers' pay settlement plans.
He said: "If upside pressures on the inflation outlook continue to build, then there may be a case for raising Bank Rate. Whether from external or domestic factors, the risks to the inflation outlook have become more skewed to the upside."
However, he stressed that the BOE's current policy stance is already restrictive.
He said that without the Iran war, "I would have expected to have cut rates at least twice by now, which means Bank Rate would be at least half a percentage point lower than it is."
He said: "Since March, I have supported keeping Bank Rate unchanged, which in effect constitutes a tightening relative to the policy path I had originally thought might materialize."
He added that the current "policy stance remains restrictive."
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