In brief

• Bank of England Deputy Governor Clare Lombardelli says the conditions for persistent inflation in the UK are crystallising.
• She signalled the possibility of another rate hike after the bank raised its Bank Rate to 4% from 3.75%.
• She did not rule out a hike in December or February, depending on data on inflationary pressure.

Signal after the rate hike

Bank of England Deputy Governor Clare Lombardelli said that conditions conducive to persistent inflation in the UK are crystallising. In a speech at a banking conference organised by King's Business School and the Money, Macro & Finance Society, she stressed that the recent increase in Bank Rate was justified (BoE’s Lombardelli sees risk that persistent inflation will crystallise – Investing.com).

Another hike possible

Lombardelli acknowledged that, unless evidence emerges of weakening inflationary pressure, she still believes a further rate hike may be warranted in the near term. In doing so, she repeated the language used in the minutes of the bank's last meeting.

Last week's decision

The Bank of England raised Bank Rate to 4% from 3.75%. The decision was taken by a vote of 8 to 1, and Lombardelli was one of the members who voted for the hike.

No specific timing announced

Asked how she would vote in the coming months, she replied that she neither ruled out nor predetermined a hike in December or February.

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