Bank of England Deputy Governor Clare Lombardelli signaled that the central bank may raise interest rates further in the near term. Speaking at the BOE Watchers Conference in London on Tuesday, Lombardelli highlighted the challenges posed by Britain’s “low-hire, low-fire” labor market, which could complicate efforts to ease wage pressures.
“In the absence of evidence of weaker inflation pressures, I continue to think there is likely to be a case for a further increase in rates in the near term,” she stated. Her remarks suggest that the BOE remains focused on tightening monetary policy to combat inflation.
The deputy governor’s comments come amid ongoing concerns about persistent inflationary pressures in the UK economy. Lombardelli’s stance indicates that the central bank is not yet ready to pivot toward rate cuts, despite some speculation about a potential easing cycle.