Bank of England Deputy Governor Sarah Breeden said there is no clear path to lower energy prices, underscoring the inflation risks confronting policymakers as the Monetary Policy Committee keeps the Bank Rate at 3.75%. The remarks followed the MPC’s 6-3 decision on September 17, 2026, to hold rates and came as market pricing reduced the likelihood of a November cut. The Bank has warned that inflation could exceed 4% in early 2027 if energy markets remain volatile. UK Consumer Price Index inflation was 3.1% in August 2026, above the BoE’s 2% target. The OECD expects inflation to average 3.1% in 2026 and 2.6% in 2027, leaving room for a 25-basis-point cut in the third quarter of 2027, which would take the Bank Rate to 3.5%. Energy prices linked to Middle East conflicts remain the main obstacle to faster disinflation, while a softening labor market is limiting wage pressures. Future rate decisions will depend on inflation, energy-market developments, geopolitical risks and other incoming data.