Bank of England Governor Andrew Bailey rejected claims that the central bank has a hidden strategy to unconditionally increase interest rates. Inflation risks for food and general prices are skewed to the upside, according to Bailey, who noted that the current market rate curve reflects investor fear of further energy price jumps.

The US-Iran war pushed energy prices high and could drive them even higher, according to Bailey. He also observed that the increase in UK mortgage rates has been larger than almost anywhere in the G7, noting that the central bank continues to monitor the impact of geopolitical tensions on domestic price stability.