# Sarah Breeden Says UK Economy Has Absorbed Recent Energy Shocks By Riza Dagoc Canonical URL: https://www.tokenpost.com/news/regulation/32391 Published: 2026-10-15T08:37:08.000Z Updated: 2026-10-15T08:37:08.000Z Section: Regulation > The Bank of England deputy governor said a prolonged shock could revive inflation pressure and require higher rates. Sarah Breeden, deputy governor for financial stability at the Bank of England, the UK's central bank, said the economy has absorbed recent energy shocks better than she expected, though a prolonged surge could renew inflation pressure and require higher rates. The UK has recorded modest economic growth. The Bank of England is watching inflation and wage data for signs that an initial energy-price shock is feeding into broader price increases. Geopolitical tensions and their effect on energy prices remain part of the policy outlook. Market pricing points to a 25-basis-point increase at the Bank of England's Nov. 5 meeting. The Monetary Policy Committee held Bank Rate at 3.75% in a 6-3 vote on Sept. 16, with three members favoring a quarter-point increase to 4%. Breeden has also warned about risks from persistent inflation and from keeping rates high for too long, as outlined in [her earlier warning about two-sided inflation risks](). Inflation and wage data are among the indicators that could shape the November decision. ## Links in this article - [her earlier warning about two-sided inflation risks](https://www.tokenpost.com/news/regulation/23788)