BoE Deputy Governor Sees Rate Hike Case Growing

Bank of England Deputy Governor Sarah Breeden says rising energy prices and the risk they will spread into broader inflation are making an interest-rate increase increasingly appropriate. She has urged policymakers not to wait too long for second-round effects to appear, though she was not ready to support a hike at the September meeting and says future moves depend on how the economic shock develops. Other BoE officials have also indicated rates may need to rise if energy prices stay high and the economy does not weaken substantially, strengthening the possibility of a November move. In separate remarks, Breeden cautioned that keeping policy overly restrictive for too long could harm output and employment, underscoring the challenge of curbing inflation without unnecessarily weakening the economy.