Burnham has to sell Bank rate rises as ‘breathing space’ – good luck with that

Billy Odell Tucker-Robinson Founder & Host — Banking With Billy Network • Financial Intelligence • Markets • World News • Independent Analysis
Published: 2026-09-17 • Permanent link

Rising concerns over inflation have forced Bank of England Governor Andrew Bailey to sell the idea of raising interest rates as a means to combat the economic downturn. In a surprise move, Bailey has instead opted to keep rates steady, citing the need for "breathing space" to assess the impact of the COVID-19 pandemic on the economy. The decision has been met with skepticism from investors, who are now bracing themselves for a potential economic slowdown. The FTSE 100 index fell by 1.5% in response to the news, wiping out millions of pounds in value.

The decision to keep interest rates steady has significant implications for consumers, who are already struggling to make ends meet due to rising costs of living. With inflation expected to continue rising in the coming months, the Bank of England's decision has left many wondering how they will be able to afford the basics. The result is a sense of uncertainty and unease among households, who are now facing a perfect storm of rising costs and stagnant wages. As a result, many are being forced to make difficult choices about how they spend their money.

Since the onset of the pandemic, the Bank of England has been working to stabilize the economy and prevent a complete collapse. However, the challenge has proven to be more difficult than anticipated, with many experts warning that the economy is still vulnerable to shock. The Bank of England's decision to keep interest rates steady is a recognition of this vulnerability, and a acknowledgement that the economy is still in a fragile state. By giving the economy "breathing space", the Bank of England hopes to create a more stable environment in which to make decisions about future policy.

As the Bank of England continues to navigate the complexities of the economic downturn, many are watching with bated breath to see how the situation will unfold. With interest rates remaining steady, the focus will now shift to the government's plans to address the cost of living crisis. The Chancellor's decision to cut taxes and increase spending is expected to have a significant impact on the economy, and many are wondering whether it will be enough to mitigate the effects of rising inflation. As the stakes continue to rise, one thing is clear: the next few months will be crucial in determining the course of the economy.