High Energy Prices Will Make It ‘Harder’ to Avoid Interest Rate Hike – Bailey
Andrew Bailey said persistent energy costs are making it harder to hold rates steady, as the Bank weighs tighter policy against weaker growth.
- Andrew Bailey told an audience in Oxford on Friday that high energy prices make it "harder" to maintain interest rates at current levels, noting The Bank has not yet increased rates but that stance is becoming difficult to sustain.
- Bailey was one of the majority who voted to maintain interest rates at 3.75% earlier this month as The Bank seeks to bring Inflation back to its 2% target level later this year.
- On Thursday, Clare Lombardelli, a deputy governor at The Bank, said in Warsaw that energy price pressure could drive policy tightening unless there is weakness in the economy as Inflation rises.
- Households face a roughly 4% rise in the energy price cap from next week, while The Bank predicts Inflation will reach around 3.7% in the fourth quarter and 4.2% in the first quarter of 2027.
- Economists widely predict The Bank will increase interest rates later this year as policymakers consider a rate hike "increasingly likely" if energy prices "remain higher" amid pressure linked to the Middle East.
13 Articles
13 Articles
Evening Standard
High energy prices will make it ‘harder’ to avoid interest rate hike – Bailey
It comes only a day after a deputy governor at the Bank said a rate hike is looking ‘increasingly likely’ if energy prices remain elevated.
BoE's Bailey says high energy prices make it harder to leave rates on hold
Bank of England Governor Andrew Bailey said on Friday that persistently high energy prices would make it harder for the central bank to leave interest rates on hold, underlining a recent shift in tone towards higher borrowing costs.
Iran war drives UK diesel price to near record high, and makes interest rate rise ‘hard to avoid’ – business live
Bank of England governor Andrew Bailey says persistently high oil and gas prices would make it hard to resist pressure to raise interest rates * Capital gains tax: how it works, and the pros and cons of another rise TalkTalk is scrambling to secure its future amid the threat of administration, closing in on deals…
It will become increasingly difficult to resist the pressure to raise interest rates the longer high oil and gas prices persist, says Andrew Bailey, governor of the Bank of England, according to Bloomberg.
BoE’s Bailey Says Persistent Energy Prices Could Force Higher Rates - ActionForex
Bank of England Governor Andrew Bailey said on Friday that persistently high energy prices could eventually make it harder for the central bank to keep interest rates unchanged, reinforcing the MPC’s recent shift toward a more hawkish stance. Speaking at the Monetary Economics Conference hosted by the University of Oxford, Bailey said “it’s going to […]
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