INSIGHT · UK
Bank of England survey shows cooling price pressures, moderating inflation outlook
BoE's latest business survey signals reduced pricing power and easing wage-growth expectations among firms. Firms are less likely to raise prices in coming months. Underpins softer inflation trajectory and may support rate-hold or cut bias.
WHY IT MATTERS
Lower inflation expectations ease regulatory capital and liquidity stress for UK banks. May enable lower stress-test loss assumptions in next supervisory cycle. Good news for consumer-facing lenders' credit profiles.
Source: WSJ · 2026-09-06