Bank of England's Bailey: Interest rate hike may not be needed

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.