BoE’s Lombardelli: Policy May Need Tightening If High Energy Prices Persist

The signal here is conditional, not directional: Lombardelli ties further tightening to energy prices staying high without either inflation falling or activity weakening, which keeps the burden of proof on incoming data rather than on the current stance. Her emphasis on wage growth as inconsistent with target matters more than the energy caveat, since it implies the BoE's concern is domestic persistence, not a transient input-cost shock. For crypto and RWA markets, the read-through runs through the rate path rather than any direct channel. Whether wage pressures actually ease is the open question.