Bank of England may tolerate inflation to support UK economy, Bailey signals

Bank of England may tolerate inflation to support UK economy, Bailey signals

Bank of England held rates at 3.75% (8-1 vote), Bailey signaling tolerance for above-target inflation (CPI 3.3%, projected ~3.5%) to avoid recession. Sustained elevated rates compress valuations and raise borrowing costs — headwind for SaaS multiples, M&A, and growth capital allocation.