Young people in UK hit by ‘low-gear economy’, warns Bank of England deputy

AI desk brief

Bank of England deputy governor Clare Lombardelli said another quarter-point increase could be warranted in December after the Bank raised its base rate from 3.75% to 4% last week. She described December as a live decision, dependent on the Iran conflict, energy prices and wider data. UK unemployment has risen to 4.7%, but she warned that employers’ selective hiring means higher unemployment need not ease inflation. Oil has fallen below $100 a barrel. For gold, further tightening could be a headwind if it lifts expected real yields, while easing energy costs could reduce pressure for additional hikes.