Will UK interest rates rise? Bank of England deputy issues new warning

• Bank of England deputy governor Clare Lombardelli has warned an interest rate rise is increasingly likely if high energy prices persist.
• Speaking in Warsaw, she stated that prolonged energy price pressures risk driving up inflation expectations and overall consumer prices.
• UK inflation reached a five-month high of 3.1 per cent last month, with households facing a four per cent increase in the energy price cap next week.
• The central bank forecasts inflation will rise to around 3.7 per cent in the fourth quarter of this year and 4.2 per cent in early 2027.
• Food price inflation is also expected to increase towards four per cent early next year as energy costs filter through to food manufacturers.

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Bank deputy warns rate rise ‘increasingly likely’ if energy prices remain high