Bank of England’s Lombardelli Signals Another Rate Rise Likely in Near Term

A facts-only brief, written by a local AI model from this article in The Wall Street Journal, November 10, 2026. It may contain mistakes, and it is not the article: the full story is at wsj.com.

Bank of England Deputy Governor Clare Lombardelli indicated on Tuesday that the central bank will probably increase its benchmark lending rate soon, unless new data shows inflation is cooling. She cautioned against market predictions that rates will hit 5% by the end of next year, noting the current level is 4%. Lombardelli explained that the energy crisis has been more severe and prolonged than anticipated, causing the bank to revise its inflation peak forecast to 4.9% for the second quarter of next year. She suggested that while a hike at the upcoming December meeting is possible, the bank prefers to adjust policy incrementally rather than making large, preemptive changes.

Background

• The Bank of England recently raised rates for the first time since the U.S.-Iran conflict began, a situation that has driven energy costs higher.
• Recent U.S. election outcomes have boosted hopes for a peace deal, leading to a drop in energy prices.
• Lombardelli stated that future decisions will rely on a mix of pricing, activity, and labor market data, noting that the job market has held up better than expected.
• The deputy governor argued that current monetary policy has been less restrictive than previously believed because the economy has grown faster than policymakers projected.

Read the full article at wsj.com

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