Bonds & Rates
Home›Bonds & Rates›Central Banks›Bank of England holds rates steady as energy-driven in…
Bank of England holds rates steady as energy-driven inflation seen later
Governor Andrew Bailey said higher energy prices are expected to raise inflation in coming months, but there is little evidence of broader, embedded price pressures.
The Bank of England kept interest rates unchanged, as Governor Andrew Bailey told markets during his press conference that inflation is expected to rise later in the year. Bailey said the near-term outlook is being influenced by higher energy prices.
Bailey also argued there is little evidence that inflationary pressures are becoming embedded in the UK economy, pointing instead to underlying disinflation, meaning slowing price growth.
The broader coverage referenced the eurozone economy, citing a preliminary Eurostat reading that eurozone GDP grew 0.4% in the second quarter of 2026, ahead of expectations.
Separately, the same market live updates noted that US borrowing costs are at their highest level since the global financial crisis.