UK Chancellor Directs BoE to Tackle Inflation Amid Economic Pressures

UK Chancellor Rachel has formally instructed the Bank of England to prioritize inflation control in the upcoming November budget, citing a current rate of 3.8%—nearly double the central bank's 2% target. The Monetary Policy Committee's 7-2 vote to maintain interest rates at 4% reflects cautious stability, though dissent suggests growing unease. With inflation projected to hit 4% next month, the UK now holds the G7's second-highest borrowing costs after the US.

Business backlash mounts as firms blame last year's £26 billion payroll tax hike and minimum wage increases for forcing price rises. The BoE attributes inflationary pressures to food costs and regulated expenses like water bills. Chancellor Rachel's letter to Governor Andrew Bailey underscores a political imperative: "The prime minister and I recognize we must do everything to keep costs down," she wrote—a pledge now tested by tightening fiscal constraints.