The Bank of England held Bank Rate at 3.75% in a 6-3 vote, and Governor Bailey says high energy prices make holding harder. The 28 October Budget lands a week before the November decision, and a hike could squeeze fiscal headroom.
ONS data show UK inflation climbing for a second month as transport, led by motor fuels, overtook other categories as the main driver of the August rise. Source
The Bank of England (BoE) held Bank Rate at 3.75% on 17 September, but the 6-3 vote was the real news. Megan Greene, Catherine Mann and Huw Pill wanted 4%. Eight days later, Governor Andrew Bailey told an Oxford conference that persistently high energy prices would make it harder to leave rates unchanged. Markets now price a high probability of a November hike.
