Bank of England Governor Andrew Bailey stated that high energy prices complicate maintaining the current interest rate. The Monetary Policy Committee remains divided, as three members previously voted to raise the rate to 4%.
Market expectations for a 25 basis point rate hike in November have risen to 80.5%, compared to 70% before Bailey's comments. The probability of a rate cut or no change has declined following these remarks.
The central bank's next policy decision is scheduled for November. Market participants are monitoring upcoming inflation data and energy price trends to assess the likelihood of further monetary tightening.
