Breeden: Raising Rates More Appropriate as Inflation Risks Grow

Bank of England Deputy Governor Sarah Breeden suggested that raising interest rates is increasingly appropriate to respond to rising inflation risks. Speaking at the UK Macro Policy Forum, she warned policymakers not to wait too long for signs of second-round effects from high energy prices, or they might regret it.

Breeden's comments align with a recent shift in tone on the Monetary Policy Committee, which could lead to a November rate hike. This would follow moves already made by the European Central Bank and U.S. Federal Reserve.

When asked about financial markets pricing in around 100 basis points of interest rate hikes over the next year, Breeden said she was focused on the next decision in November.