{
  "id": 9544346,
  "title": "Interest rate hikes ‘increasingly likely’ despite debate over inflation risk",
  "url": "https://urgent.news/2026/09/24/interest-rate-hikes-increasingly-likely-despite-debate-over-inflation",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-09-24T11:26:40.000Z",
  "source": {
    "name": "City AM",
    "slug": "city-am",
    "url": "https://www.cityam.com/interest-rate-hikes-increasingly-likely-despite-debate-over-inflation-risk/"
  },
  "original_language": "en",
  "account": "Deputy governor Clare Lombardelli of the Bank of England suggested that an interest rate increase is \"increasingly likely\" if energy prices remain elevated for an extended period. She made this observation at an event in Warsaw, noting that higher energy costs make it \"increasingly likely\" that monetary policy will need to be tightened. The Bank of England was the only major central bank to maintain its interest rates during a recent increase by the Federal Reserve and European Central Bank. Inflation in the UK rose to 3.1% in the year leading up to August. The Monetary Policy Committee, which voted 6-3 to keep rates unchanged, believed that price growth could exceed 4% early next year. While Lombardelli, considered a hawkish member of the committee, ultimately voted to maintain the current rate of 3.75%, she acknowledged that the impact of elevated energy prices on the UK economy and wage settlements is not yet clear. She indicated that policy may need to tighten if the energy price surge persists, but she cautioned against mechanically responding to energy price movements. Lombardelli emphasized that there is a greater risk that energy price increases could push prices higher in the coming months. She also warned that the trajectory of energy prices could lead to an adverse scenario, as outlined by the bank's forecasters, though it remains uncertain whether companies will pass on the cost increases. Another Bank official, Swati Dhingra, expressed caution on the need for an interest rate hike, stating that the timing would become clearer during the winter months as more information on energy prices, pay settlements, and wage adjustments becomes available. Dhingra added that financial tightening has already begun, and the current evidence of inflation does not show a broad-based price increase, unlike the rapid price spikes during the 2022 energy war. The Organisation for Economic Co-operation and Development (OECD) suggested that the Bank of England might not need to raise interest rates to control inflation.",
  "summary": "A Bank of England policymaker has suggested that an interest rate hike looks “increasingly likely” if energy prices remain higher for longer although officials struck a cautious tone on whether UK inflation would spiral over the next year. Speaking at an event in Warsaw, deputy governor Clare Lombardelli teased interest rate hikes as she said [...]",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 2,
    "also_reported_by": [
      {
        "outlet": "Daily Maverick",
        "title": "ANALYSIS: Economic fire — Interest rate adjustment makes for interesting braai chat",
        "url": "https://urgent.news/2026/09/24/analysis-economic-fire-interest-rate-adjustment-makes-for-interesting",
        "published": "2026-09-24T10:48:40.000Z"
      }
    ]
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}