Bank of England Deputy Signals Inflation Concerns

By the Editorial Team · Tuesday, September 29, 2026

Bank of England deputy governor Sir Dave Ramsden signaled increased concern over the risk of sustained high inflation, citing rising energy prices and upcoming wage negotiations as key factors. This shift in outlook suggests the central bank may consider raising interest rates in future meetings if inflation pressures continue to build.

A deputy governor of the Bank of England has expressed growing concern about the risk of persistently high inflation, marking a shift in the outlook of the central bank’s policymaking committee. Sir Dave Ramsden, speaking in London, indicated that the possibility of sustained inflationary pressures has increased since the Bank’s July meeting and could influence future monetary policy decisions.

Ramsden’s comments align with those made last week by fellow deputy governors Sarah Breeden and Clare Lombardelli, who highlighted how rising oil and gas prices might contribute to broader inflationary pressures throughout the economy. During a question and answer session following a speech to the Money Macro and Finance Society, Ramsden described the current environment as one of "higher and longer-lasting headline inflation," which is starting to shape his policy considerations.

At the Bank of England’s monetary policy committee meeting in September, Ramsden voted with the majority, 6-3, to maintain the base interest rate at 3.75 percent. However, he noted that the panel’s next meeting in November may be shaped by early indications of wage negotiations for 2027, which typically take effect in March and April. Wage growth often plays a significant role in inflation dynamics by influencing consumer spending and business costs.

“If upside pressures on the inflation outlook continue to build, there could be a case for increasing bank rate,” Ramsden said, emphasizing that risks to inflation—whether stemming from international factors like energy prices or domestic factors such as wage developments—have become more tilted toward the upside.

The Bank of England’s approach to managing inflation reflects ongoing uncertainty in economic conditions, with energy market volatility and wage settlements expected to serve as key indicators. While some policymakers have recently signaled readiness to tighten monetary policy if necessary, the decision will depend on emerging economic data in the coming months. The central bank thus faces the challenge of balancing efforts to control inflation against the potential impact of higher interest rates on growth and employment.

This article was reported by synthesizing coverage from multiple independent news outlets to present a balanced, unbiased account. Read about our editorial standards. Spotted an error? Let us know.