BOE's Lombardelli Flags Potential Rate Hike Amid Elevated Oil Prices

By EC Assets · Published 24 September 2026

Bank of England Deputy Governor Clare Lombardelli indicated that interest rates will likely need to rise if energy prices remain high. Lombardelli's comments were made on Thursday, September 24, 2026. This outlook is contingent on a lack of clear evidence to the contrary. Lombardelli stated that she supports a gradual removal of monetary policy restriction. She also previously said that holding interest rates steady at 3.75% was the right decision, finding it a clear judgment. The Deputy Governor noted that policymakers should proceed cautiously with interest-rate cuts. This caution stems from concerns that wage growth and inflation may not decrease quickly. Lombardelli has also spoken about the outlook for inflation. She previously stated it was too soon to assess the inflation impact for Britain of U.S. President Donald Trump's tariffs. Rising fuel costs are impacting businesses and customers. The Bank of England official's recent remarks highlight the central bank's focus on energy prices as a driver of potential policy shifts. This article is intended for informational purposes only. It does not constitute investment advice.