BoE’s Lombardelli: Wouldn’t rule out rate hike possibility in December

Bank of England (BoE) Deputy Governor Clare Lombardelli said in an interview with Guardian that she won’t rule out an interest rate hike in the December meeting.

Additional remarks

Young people in UK hit by ‘low-gear economy’.

Seeing a real fall-off in hiring in labour market, but not seeing much in the way of redundancies.

Wouldn’t rule  out rate hike possibility in December; “equally, I don’t have enough information just yet”.

Market reaction

No major reaction seen in the British Pound (GBP), following release of BoE Lombardelli's comments. As of writing, GBP/USD is marginally higher to near 1.3452.

Lombardelli keeps December hike in play as UK labour market cools

Lombardelli’s 6/10 FXS Speechtracker score sits notably below the 7.2/10 historic average, signalling a softer tone as the Deputy Governor highlights a “low-gear economy” and a clear fall-off in hiring. The emphasis on young people being hit hardest and the absence of significant redundancies points to a cautious, growth-sensitive stance that leans mildly dovish versus past communications.

However, the explicit comment that a December rate hike “wouldn’t be ruled out” keeps a hawkish option alive, preventing a fully dovish pivot. For GBP, this mix of weaker labour momentum and an open door to further tightening suggests limited upside, with markets likely to fade aggressive hike bets while respecting that the Bank of England is not yet ready to declare the tightening cycle over.