The Bank of England sees the need to keep the rate near 5.25% for a long time

According to the chief economist of the Bank of England, Hugh Pill, a more preferable option for the bank would be to keep the key interest rate close to the current level of 5.25% for a long time. The second, less favorable scenario involves an increase in the rate and its subsequent reduction. 

According to Pill, both scenarios have approximately the same effect in the context of fighting inflation, but maintaining the rate has fewer risks to financial stability. 

He also noted that the central bank's priority now is to ensure a long-term restrictive monetary policy in order to return inflation to the target level.

Recall that on August 3, the Bank of England raised its key interest rate by 25 basis points, reaching the level of 5.25%, which was the highest level in the last 15 years. Market participants in general predict that the key rate may rise to 5.75-6%.