Overview
- Senior Bank of England officials said in late September 2026 that there is no clear path to lower energy prices and that a larger or prolonged shock would likely force a policy reassessment.
- The Monetary Policy Committee has held the Bank Rate at 3.75% and says future decisions will be made meeting by meeting based on new data.
- Officials report that so far the indirect pass-through from energy to wages and broad prices has been limited, a sign of slack that reduces immediate second‑round inflation risks.
- Financial markets have responded by cutting the chance of a November rate cut and pricing in some probability of further rate increases if energy-driven inflation persists.
- A BoE/Ipsos survey and Bank analysis show consumers expect higher inflation, households are more sensitive to food costs, and only about 10% plan to seek higher pay which together will shape the Bank’s assessment of how entrenched price pressures become.