Breeden Skeptical on Energy Price Relief Amid Ongoing Volatility
The Bank of England's Deputy Governor Sarah Breeden expressed skepticism about finding a clear path to lowering energy prices in the UK. Her comments come amid ongoing volatility in UK energy costs, influenced by Middle East conflicts, as noted in the Bank’s September 2026 policy minutes.
According to the minutes, the Monetary Policy Committee (MPC) has maintained the Bank Rate at 3.75%, reflecting their cautious stance as energy prices remain elevated. This suggests that the Bank is still navigating uncertain inflationary pressures while keeping future rate decisions data-dependent.
Market pricing implies a decreased likelihood of a rate cut in November, with recent moves reflecting this sentiment. The Bank's decision-making remains data-driven, with energy prices a key factor in future rate deliberations.