The Bank of England sees no clear path to lower energy prices. Deputy Governor Sarah Breeden expressed skepticism about a downward trajectory for energy costs, amid volatility driven by Middle East conflicts, according to the September 2026 policy minutes. The Monetary Policy Committee (MPC) maintained the Bank Rate at 3.75%, reflecting a cautious stance as energy prices remain elevated. This position suggests the institution is navigating uncertain inflationary pressures while keeping future rate decisions data-dependent. Market pricing implies a decreased likelihood of a rate cut in November.
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