Bank of England sees no clear path to lower energy prices amid volatility

Bank of England Deputy Governor Sarah Breeden expressed skepticism about finding a clear path to lowering energy prices. Her remarks come amid ongoing volatility in UK energy costs, influenced by Middle East conflicts, as noted in the Bank’s September 2026 policy 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. Key Takeaways Breeden’s statement suggests continued uncertainty around energy prices, consistent with ongoing inflationary pressures. Market pricing implies a decreased likelihood of a rate cut in November, with recent moves reflecting this sentiment. The Bank of England’s decision-making remains data-driven, with energy prices a key factor in future rate deliberations. What to Watch Markets will closely monitor upcoming data releases and any further comments from Bank of England officials. Developments in UK energy prices and any shifts in the Bank’s communication could influence market expectations for the November meeting. Additionally, ch...