BoE policymaker Sarah Lombardelli said interest rates may need to rise if elevated energy prices continue to push InflationInflation refers to a sustained rise in the general price level that reduces the purchasing power of money. The term belongs in Level 7 because it helps connect macro conditions...Read More higher. Her comments highlight concerns that prolonged energy costs could keep inflation above target.
Bank of England Deputy Governor Clare Lombardelli said interest rates will likely need to rise if elevated energy prices persist, unless there is clear evidence that the economy is weakening. Speaking in Warsaw on September 24, she warned that prolonged energy costs could feed inflation expectations, wage bargaining and price-setting. Lombardelli voted with the 6–3 majority to hold Bank Rate at 3.75% last week, after saying the case for higher rates was building. This materially updates Piplix’s existing BoE decision coverage.
