Inflation Pressures Could Push BOE to Raise Interest Rates in Coming Months
Dow Jones
Aug 28
1054 GMT - High energy prices and food inflation could drive U.K. headline inflation above 4% by early 2027, causing the Bank of England to increase interest rates, RBC BlueBay Asset Management's Mark Dowding says in a note. Energy costs are expected to rise after the U.K. energy regulator Ofgem announced a 4% increase in domestic energy bills from October, Dowding says. A further increase of as much as 9% in energy bills may follow in January, he says. Markets fully price in one quarter-point BOE rate increase in 2026, and a possible second rate rise by April 2027, LSEG data show.
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