A deputy governor of the Bank says a rate rise is increasingly likely if energy prices remain high. He links the prospect of tighter policy to recent inflation data and the path for energy-driven price increases.
The sources say the Bank expects inflation to rise further, forecasting an increase to around 3.7% in the fourth quarter of this year. This would leave inflation above the Bank’s 2% target, moving further away from it after the latest figures.
Across the reports, outlets focus on the same core messages: inflation is currently running above target, it has recently increased, and energy prices are a key uncertainty shaping the outlook. The emphasis is on conditionality—any potential decision depends on whether energy costs continue to keep inflation elevated.
