Phoebus reacts to MPC decision

17 September 2026

Richard Pike, sales and marketing director at Phoebus Software, said:

"A decision by the Bank of England to hold the base rate was widely expected, even though inflation remains stubbornly above its 2% target.

However, the path beyond this meeting is becoming much harder to read. The sharp rise in oil prices over recent weeks is another potential source of upward pressure as we head into autumn.

The question for the Bank will be whether those external pressures become embedded in the wider inflation picture. There are some encouraging signs domestically, with wage growth and services inflation easing, but if higher energy and fuel costs begin feeding through into other prices, the MPC may have to keep rates higher for longer than was expected earlier in the summer.

The mortgage market has already started pricing this in and the future direction of rates will depend on how the Bank assesses the balance between cooling domestic pressures and a much more uncertain inflation outlook.”