Bank of England Deputy Governor Dave Ramsden said the recent rise in government-bond yields should help limit the effect of higher energy costs on U.K. prices, but the central bank may need to raise interest rates if inflationary pressures intensify. The Bank left Bank Rate at 3.75% earlier this month, while investors expect an increase to 4% in November. Ramsden was one of six Monetary Policy Committee members who voted to keep borrowing costs unchanged, making his comments relevant to market expectations for a hike. He said the Bank’s policy stance remains restrictive, but a further buildup in upside pressures on the inflation outlook could justify an increase in Bank Rate. Unlike the European Central Bank and the U.S. Federal Reserve, the Bank of England has not increased interest rates since the start of the Iran war, partly because its policy stance was already restrictive. The Bank has pursued quantitative tightening since 2022 by reducing its government-bond holdings, while inflation stands at 2.6% and policymakers continue to monitor energy prices, domestic food costs, wage settlements and potential second-round effects. Investors will watch incoming inflation and wage data, as well as comments from Governor Andrew Bailey and Chief Economist Huw Pill, for indications of the November decision and subsequent policy path.