Bank of England deputy warns rate rise likely if energy prices stay high
Summary
A deputy governor at the Bank of England has indicated that a rise in interest rates is becoming more likely if energy prices remain high. The warning follows reports that inflation reached a five-month high of 3.1% last month, moving further away from the Bank’s 2% target. The Bank has forecast that inflation will rise to approximately 3.7% in the fourth quarter of this year. The statements were made as energy prices remain elevated, adding pressure on the central bank’s monetary policy decisions. The Bank has not yet made a decision on a rate increase, but the possibility is being closely considered.
Latest: On 2026-09-25, the Bank of England deputy reiterated concerns that a rate hike may be necessary if energy prices remain high, following recent inflation data.
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How it unfolded
Friday 25 September
On 2026-09-25, the Bank of England deputy reiterated concerns that a rate hike may be necessary if energy prices remain high, following recent inflation data.
- 07:20Evening StandardHigh energy prices will make it ‘harder’ to avoid interest rate hike – Bailey
- 07:20The IndependentHigh energy prices will make it ‘harder’ to avoid interest rate hike – Bailey
Thursday 24 September
- 08:41The IndependentWill UK interest rates rise? Bank of England deputy issues new warning
- 07:19The IndependentBank deputy warns rate rise ‘increasingly likely’ if energy prices remain high
- 05:37Evening StandardBank deputy says rate rise ‘increasingly likely’ if energy prices stay high
- 05:37The IndependentBank deputy says rate rise ‘increasingly likely’ if energy prices stay high