- Bank of England Deputy Governor Clare Lombardelli tied the UK rate outlook directly to the duration of the Middle East conflict, saying a hike becomes more likely the longer the war runs.
- The guidance points to energy-driven inflation risk keeping the BOE from easing, with high energy costs the stated trigger for tighter policy.
- This is a BOE policy signal, not a commercial bank story: it moves GBP rate expectations and UK rate-sensitive sectors.
Quotes
“an interest-rate hike is increasingly likely the longer the Middle East conflict goes on”