UK INFLATION RISES AFTER BANK OF ENGLAND DIVIDED SEPTEMBER HOLD

What happened: UK CPI inflation rose to 3.5% in the 12 months to September, up from 3.1% in August, after the Bank of England held Bank Rate at 3.75% on a split vote. Key numbers: CPI 3.5% vs 3.1% prior, above the 3.4% Reuters poll median. Monthly CPI 0.4%. Core CPI 2.8% from 2.6%. Services inflation 3.7% from 3.4%. MPC vote 6-3 to hold, with three favoring 4%. Why it matters: Danske revised its forecast to include a November increase, citing greater inflation concern and stronger growth. Deputy Governor Clare Lombardelli said policy might need to tighten if elevated energy prices persist.

UK CPI inflation rose to 3.5% in the 12 months to September, up from 3.1% in August, after the Bank of England held Bank Rate at 3.75% on a split vote.

Danske revised its forecast to include a November increase, citing greater inflation concern and stronger growth. Deputy Governor Clare Lombardelli said policy might need to tighten if elevated energy prices persist.