Government policy, not the Bank of England will determine future interest rate hikes

Headline inflation rose to 3.1 per cent in August, increasing from 2.9 per cent in July, aligning closely with market expectations. William Nixon suggests that future interest rate hikes will be determined by government policy rather than the Bank of England. Two significant risks are currently identified: the upcoming Budget and a potential renewed surge in global energy prices. These factors, alongside the Consumer Prices Index data, are central to the current economic outlook and monetary decisions.