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BOE Rate Rise Increasingly Likely If Energy Prices Stay High, Deputy Governor Says

Provided by Dow Jones Sep 24, 2026, 8:30:00 AM

By Paul Hannon

The need for a rate rise by the Bank of England will grow if energy prices remain high, unless the economy weakens, Deputy Governor Clare Lombardelli said Thursday.

The central bank last week left its key interest rate unchanged, diverging from its peers, which have all lifted borrowing costs since energy prices jumped in response to the U.S.-Iran war.

Lombardelli was one of six members of the Monetary Policy Committee to vote for a hold, with three backing a rise in the key rate to 4% from 3.75%.

But in a speech, she said the vote may change if energy prices remain high.

"Policy is increasingly likely to need to tighten if elevated energy prices persist, absent clear evidence of disinflation or weaker activity," she said.

Write to Paul Hannon at paul.hannon@wsj.com

(END) Dow Jones Newswires

September 24, 2026 04:30 ET (08:30 GMT)

Copyright (c) 2026 Dow Jones & Company, Inc.

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