Bank of England deputy governor Breeden said weak UK growth reduces the risk that recent inflation spikes become persistent via wages or corporate pricing, and there is not a strong case to raise rates immediately. She noted that borrowing costs for firms and households have risen since the Middle East war and, combined with sluggish activity, lessen the need to tighten to contain price pressures. Breeden, a dovish MPC member who has voted to keep Bank Rate at 3.75% at the past three meetings, s

Bank of England deputy governor Breeden said weak UK growth reduces the risk that recent inflation spikes become persistent via wages or corporate pricing, and there is not a strong case to raise rates immediately. She noted that borrowing costs for firms and households have risen since the Middle East war and, combined with sluggish activity, lessen the need to tighten to contain price pressures. Breeden, a dovish MPC member who has voted to keep Bank Rate at 3.75% at the past three meetings, said she expects inflation to fall back toward the 2% target absent further war-related shocks, but would support rate hikes if evidence of sustained second‑round effects emerges. She also flagged cyber‑security risks from recent AI advances as a Bank of England concern.