BoE's Ramsden Warns High Energy Prices Could Justify Interest Rate Hike

Bank of England Deputy Governor Dave Ramsden warned that persistently elevated energy costs could justify a rate hike as UK inflation risks tilt upward. Holding the Bank Rate at 3.75% has already tightened policy relative to earlier expectations of cuts, though external shocks threaten to spill into broader wages and domestic prices. The BoE previously held rates at 3.75% in a 6-3 vote, where three members sought an immediate 25 basis point hike. Markets price an 85% probability of an increase at the upcoming meeting as headline inflation is projected to reach around 3.75% in Q4 2026.