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BoE Warns Risk Premium Could Rise With Oil Prices

9/8/2026

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Story summary
  • Bank of England Governor Andrew Bailey told the UK Treasury Committee investors price a risk premium into rate expectations.
  • He said the premium reflects worries that further energy price increases could push inflation higher.
  • He emphasized future rate hikes depend on economic developments, not a predetermined timetable.
  • He warned prolonged high crude oil prices could generate second-round effects on wages and prices.