Allshores/Phoenix Pharmacy coverage deal takes effect
A postponed prescription coverage deal between Allshores and Phoenix came into effect yesterday, with the insurer lauding that some high-cost drugs will now have no co-pay
A list of 46 high-cost drugs will now have zero co-pay in most circumstances for some Allshores members – if they fulfill those prescriptions at one of the eight Phoenix Pharmacies.
If members choose to fulfill elsewhere, however, the most Allshores will cover is 50%.
The 46 prescriptions include diabetes and weight-loss drugs Ozempic, Mounjaro and Waygovy; blood-thinner Eliquis; and specialized cancer drugs such as Lenalidomide.
Allshores, the amalgamation of health insurers Argus and BF&M, previously stated that these medications only represent about 3% of prescriptions, but account for more than 30% of total prescription spend among their members.
The deal was supposed to come into effect in April, but Health Minister Kim Wilson had the Bermuda Health Council request a delay to implementation, after independent pharmacies and doctors cited concerns over the deal.
The online list states that fulfilling prescriptions at other pharmacies will be considered out-of-network, and “coverage will be 50% or per the member’s Schedule of Benefits”.
The website also states that prior to June 1st, Allshores coverage for many of these drugs was 80%, whereas the new deal puts that up to 100% with no co-pay at Phoenix Pharmacies.
An Allshores spokesperson told the Royal Gazette that “at the heart of this initiative is a commitment to ensure members receive the care they need without financial hardship.”
Independent pharmacists previously voiced their concerns when it appeared the Allshores deal may restrict certain prescriptions to one network, citing the loss of established relationships with long-term patients, limited choice for customers, and the fact that Phoenix Pharmacies are in only eight locations – not including St David’s, St. George’s and Somerset.
In February, when Health Minister Kim Wilson sought a delay to the Allshores/Phoenix deal, she also reiterated that Government is committed to introducing anti-monopoly legislation.
“Competition law is not about punishing success,” the Minister said, “it is about protecting the public interest. It ensures that innovation thrives, that consumer choice is preserved, and that market power is not exercised in ways that undermine affordability, fairness, or access.”
Responding to our questions as to whether all Allshores plans will include coverage of specialist drugs, an Allshores spokesperson said that benefits can vary depending on the plan, and members should refer to the latest schedule of benefits.
The spokesperson added that the new Allshores-Phoenix deal has removed significant out-of-pocket costs that many patients previously faced, and that “some of our cancer patients currently pay thousands of dollars per month even with just a 20% copay, for example. These patients will now have no copay.” (Full response from an Allshores Spokesperson below)
The full list of medications affected by the Allshores/Phoenix deal can be found at allshores.com/pharmacy.
Response from an Allshores Spokesperson:
“People with Allshores health plans should refer to their latest Schedule of Benefits for the information about their plans. Benefits can vary depending on the plan. If there are any questions about their benefits, people can reach out to our teams at pharmacy@allshores.com who are ready to assist them. At the heart of this initiative is a commitment to ensure members receive the care they need without financial hardship. By reducing the acquisition cost of these specialist medications, we have been able to expand coverage to 100% for most eligible members—removing significant out-of-pocket costs that many patients previously faced. Some of our cancer patients currently pay thousands of dollars per month even with just a 20% copay, for example. These patients will now have no copay.”
Microsoft teases new era of AI-driven devices at software developer conference
At Microsoft’s annual software developer conference in San Francisco, Microsoft executives revealed Project Solara, a family of prototypes that includes devices around the size of a smart speaker or keycard badge
International News via Reuters:
Microsoft, the company known for its operating system and apps, on Tuesday hinted at a new wave of gadgets that will use AI agents designed to complete specific tasks in healthcare and retail rather than traditional apps.
At Microsoft’s annual software developer conference in San Francisco, Microsoft executives revealed Project Solara, a family of prototypes that includes devices around the size of a smart speaker or keycard badge, based on chips from Qualcomm and MediaTek.
The devices have screens and microphones, but instead of running an operating system and apps like a smartphone, Microsoft executives showed them hosting AI agents that talk to cloud-computing systems to carry out specific tasks, such as documenting a medical visit with a nurse.
“It’s a new platform, but perhaps more importantly, it’s a set of new platform rules that don’t, in some sense, hem in what you can imagine,” Microsoft CEO Satya Nadella said during a keynote address.
Microsoft is competing against rivals such as OpenAI and Anthropic to sell cloud-based AI tools for coding and other tasks, while also trying to nudge Microsoft customers toward running AI technologies on the fleets of laptop and desktop computers running its Windows operating systems.
NVIDIA-POWERED ‘DREAM MACHINE’
Microsoft on Tuesday showcased a new computer called the Surface RTX Spark Dev Box loaded with an Nvidia chip.
Nadella said the forthcoming computer was a “dream machine.” There is a wait list to buy the computer and Nadella said he is on it, too.
The new machine uses an Nvidia chip, unveiled on Monday, to help bring AI directly to PCs. The Surface RTX Spark Dev Box follows a laptop that Microsoft introduced with Nvidia this week, and Microsoft executives showed it running an AI model with 120 billion parameters — a rough measure of a model’s complexity — that most PCs would not be able to load.
The new wave of PCs is priced to compete with Apple’s premium offerings, and their announcement helped boost shares of both Microsoft and major PC makers such as Dell Technologies, though analysts said it may take time for businesses to adopt the new machines.
Microsoft on Tuesday said it is developing new tools to help Windows run OpenClaw, a piece of open-source software that can direct groups of AI bots called agents to carry out everyday tasks for users.
Many of the tools Microsoft showed on Tuesday are aimed at making OpenClaw, which has gained popularity in China and helped rival Apple sell Mac computers, safe enough for businesses to use on computers with sensitive corporate data. Onstage during a demo, executives showed how a corporate IT department could prevent users from inadvertently deleting all the files on their desktop.
“You can totally run OpenClaw inside your company now,” Peter Steinberger, the Austrian software engineer who created OpenClaw, said during a guest appearance.
NEW AGENTS, AI MODELS
Microsoft also said it would introduce a new AI agent called Scout that can carry out tasks such as gathering up emails or messages that need a decision from the user to move forward.
Microsoft also showcased the work of its AI unit’s superintelligence team, formed late last year. Aiming to catch up to rivals Anthropic and OpenAI, the unit released what it called the most efficient transcription AI model of any cloud hyperscaler and an image model to vie with Google’s.
MAI-Thinking-1, Microsoft’s first reasoning model, matched the performance of Anthropic’s Claude Opus 4.6, launched earlier this year, said Mustafa Suleyman, who heads Microsoft’s AI efforts. Anthropic last week announced Opus 4.8.
Microsoft on Tuesday also introduced a technology called Web IQ, an AI agent that can perform web searches.
Reporting by Stephen Nellis and Jeffrey Dastin in San Francisco; Editing by Muralikumar Anantharaman, Rod Nickel, Matthew Lewis and Cynthia Osterman
Protests over US Ebola site in Kenya kill two, court keeps suspension
The proposed 50-bed unit on an air force base in central Kenya for Americans exposed to the virus in Democratic Republic of Congo or Uganda has angered many Kenyans
International News via Reuters:
A Kenyan court blocked on Tuesday for another three weeks a proposed U.S. Ebola quarantine facility that has triggered protests in which two people were killed, and ordered the government to disclose its agreement with Washington.
The proposed 50-bed unit on an air force base in central Kenya for Americans exposed to the virus in Democratic Republic of Congo or Uganda has angered many Kenyans. They accuse the U.S. of offloading the health risk of caring for patients.
A Kenyan court last week temporarily suspended the plan in response to a lawsuit from a legal advocacy group. However, U.S. military aircraft have continued to fly in staff and equipment in recent days, according to a U.S. official and diplomatic sources.
Kenyan High Court Judge Patricia Nyaundi on Tuesday issued an order barring the Kenyan government from taking any steps to build or begin operations at the facility in the town of Nanyuki before the case is resolved.
The judge also ordered the government to disclose all agreements and operational protocols related to the facility within seven days and scheduled the next hearing for June 23.
Senior U.S. health official Mehmet Oz told reporters in a White House briefing on Tuesday that President Donald Trump’s administration is confident the State Department will be able to work with Kenya to establish the facility.
“I think we’re going to work out … a very favourable arrangement with Kenya,” Oz said. “They’re going to do the right thing for everybody, and I think it’s a perfect solution.”
Hundreds protested against the plan in Nanyuki on Monday. Protest organiser Patrick Wahome said two people were killed by gunshot wounds after police opened fire. A security source also said two people had died but did not specify the cause of death.
Police spokesperson Michael Muchiri said he was not aware of the deaths.
KENYAN PRESIDENT RUTO DEFENDS US AGREEMENT
On Monday, Kenyan President William Ruto said the facility was part of a wider national preparedness plan and long-running health partnership with Washington.
The U.S. said last week it would provide $13.5 million for Kenya’s Ebola preparedness effort. Ruto said the site would serve Kenyans and foreign nationals too.
“We are a responsible government. We know what we are doing,” Ruto said.
A U.S. official, speaking on condition of anonymity, told Reuters the facility would only be treating U.S. citizens.
“American officials, doctors, and clinicians will be at this facility, treating American citizens at the facility. Our highest priority is containing the spread of Ebola and offering the highest clinical care to Americans,” the official said.
Kenyan courts are known for their independence, especially by regional standards, although activists often accuse the government of ignoring or circumventing orders.
The outbreak of the rare Bundibugyo strain of Ebola is centred in eastern Congo and several cases have spilled over into neighbouring Uganda.
There have been 321 confirmed cases and 116 suspected cases of Ebola in Congo, including 48 deaths, the World Health Organization said on Tuesday. Uganda has confirmed 15 cases.
The Trump administration has said it “cannot and will not allow” any cases to enter the U.S., unlike during the 2014-2016 Ebola outbreak in West Africa when several infected U.S. nationals were treated on U.S. soil.
A U.S. citizen who contracted Ebola while treating patients in the DRC as a medical missionary was moved to Germany last month for treatment along with five others who were exposed.
A seventh person was taken to the Czech Republic.
The facility in Nanyuki is meant to receive Americans who have been exposed to the virus but are still asymptomatic. Patients who develop symptoms would be sent for care in other countries, U.S. officials have said.
Reporting by Humphrey Malalo, Edwin Okoth, Aaron Ross and Ammu Kannampilly; Additional reporting by Steve Holland and Ahmed Aboulenein in Washington; Writing by Vincent Mumo Nzilani and Aaron Ross; Editing by Kate Mayberry, Andrew Cawthorne and Gareth Jones
Dollar in tight range as traders eye Middle East peace talks
An agreement between the U.S. and Iran to open the crucial strait would ease pressure on currencies of oil-importing countries such as Japan and euro zone nations, while reducing safe-haven demand for the dollar
International News via Reuters:
The dollar traded in a narrow range on Tuesday as investors stayed on alert for signs of progress on a potential deal to reopen the Strait of Hormuz.
An agreement between the U.S. and Iran to open the crucial strait would ease pressure on currencies of oil-importing countries such as Japan and euro zone nations, while reducing safe-haven demand for the dollar.
U.S. President Donald Trump said on Monday that talks with Iran were ongoing. Oil prices were higher on Tuesday, and investors have treated news of progress around ending the U.S.-Israeli war on Iran with caution, citing the fragility of a ceasefire struck between Washington and Tehran in April and frequent assertions by Trump in recent weeks that an agreement is forthcoming.
The dollar index, which measures the currency against six peers, was up 0.046% at 99.216. It has traded in a narrow range of about 98.9 to 99.5 since May 15. Despite the surge in energy prices, the U.S. economy has remained stable, though growth has slowed and job openings have increased.
“The dollar could gain momentum through the week if US-Iran negotiations remain inconclusive and Friday’s non-farm payrolls report confirms continued resilience in the world’s largest economy,” said Karl Schamotta, chief market strategist at Corpay, in a research note.
The dollar jumped at the start of the Iran conflict on February 28, buoyed by safe-haven demand and the U.S. economy’s relatively limited exposure to energy-driven inflation. It has given back some of those gains as uncertainty over the conflict’s direction persists.
DATA IN FOCUS
Euro zone inflation data reinforced expectations for a quarter-point European Central Bank rate hike later this month, which markets had already widely priced in. Traders now are betting on two hikes by December and are putting about a 50% chance on a third increase.
The euro fell 0.03% to $1.1629.
“The pass-through of higher energy and input prices to final consumption will be limited due to a lack of ability and willingness of consumers to actually pay for these higher prices,” said Carsten Brzeski, head of macro at ING.
U.S. data on Tuesday showed job openings rose to 7.618 million in April, ahead of Friday’s closely watched monthly employment report.
Markets expect the Federal Reserve’s next move will be a rate increase.
“The combination of loose U.S. financial conditions, reversing safe-haven support and the Fed sounding patient has kept the dollar in check,” Paul Mackel, global head of forex research at HSBC, said.
YEN’S 160 PER DOLLAR MARK IN THE SPOTLIGHT
Japan’s Finance Minister Satsuki Katayama said on Tuesday authorities are ready to respond in currency markets as needed, while refraining from comment on recent moves.
The yen was last weaker at 159.920 per dollar, near the 160 level widely seen as a trigger for intervention.
Markets are awaiting a speech by Bank of Japan Governor Kazuo Ueda on Wednesday for clues on whether the central bank will raise rates next week.
“Action remains likely, and even though inflation has eased, the risk of being behind the curve is rising,” Derek Halpenny, head of research, global markets at MUFG, said.
Bitcoin was last down 5.8% at $67,213.42, lowest since April.
Reporting by Hannah Lang in New York and Stefano Rebaudo. Additional reporting by Satoshi Sugiyama. Editing by Emelia Sithole-Matarise, Chizu Nomiyama, Mark Potter and David Gaffen
UK police under pressure after dying student was handcuffed
Henry Nowak died after the knife attack in the southern England city of Southampton last December
International News via Reuters:
British police faced a national backlash on Tuesday over the inflammatory case of an 18-year-old student who was handcuffed as he lay dying from stab wounds after his killer falsely alleged a racist attack.
Henry Nowak died after the knife attack in the southern England city of Southampton last December.
His killer Vickrum Digwa, a 23-year-old Sikh man, was sentenced to life in prison on Monday, having lied to police at the time that Nowak had assaulted him.
In police bodycam footage, Nowak is seen lying on the street saying “I’ve been stabbed” and “I can’t breathe” while an officer responds “I don’t think you have, mate”.
Prime Minister Keir Starmer said there were “serious questions” to answer, including how “allegations of racism informed or fed into the decision-making in that particular case.”
“It is impossible to watch that footage and not appreciate that those questions absolutely have to be answered,” Starmer told reporters.
Judge William Mousley acknowledged in court on Monday that the case had stirred racial tension across Britain.
Nigel Farage, whose anti-immigration Reform party leads opinion polls, said it was an example of the rights of ethnic minorities trumping those of white British people.
“The fear of being called racist was greater than dealing with Henry Nowak’s murder,” he said in a statement.
“We should respond to this with pure cold rage.”
‘INHUMANE AND DEGRADING’ TREATMENT
A protest later on Tuesday outside the Southampton police station drew a few hundred people chanting “I can’t breathe”, including anti-immigration activist Tommy Robinson.
Other protests have been advertised for this week.
Digwa stabbed Nowak with a knife he said he was permitted to carry due to exemptions for Sikhs to have ceremonial daggers.
When the police arrived, Digwa said his turban had been knocked off and he had an injury to his eye.
Nowak’s family called his treatment by police “inhumane and degrading” but in a statement outside court, his father said his death should not be “used to create further division, hatred or tension”.
That was echoed by Britain’s interior minister, Shabana Mahmood, who told parliament on Tuesday that everyone was equal before the law and urged calm during the investigation.
“We must condemn those who seek personal political profit from tragedy,” she said, warning that threats against police and inflammatory commentary were worsening the situation.
She said public services should assess only the risk a person poses, not race or religion.
Referencing previous efforts to tackle racism in policing, Mahmood said, “Whatever changes are made, it is important that nobody over-corrects or course-corrects such that all of us as citizens are no longer equal before the law.”
Reform leader Farage sought to draw parallels with the 2020 killing of George Floyd in the U.S. which sparked the Black Lives Matter movement. Floyd had said “I can’t breathe” as a police officer kneeled on his neck for several minutes.
Nowak died shortly after being handcuffed by police. Once they realised he was injured, they uncuffed him and started CPR.
The police force, Hampshire Police, has apologised.
In a separate statement on Tuesday, the force said one of the officers involved in the arrest had resigned, while three others were being treated as witnesses in the investigation.
A spokesperson for the Attorney General’s Office said it had received multiple requests to consider raising Digwa’s 21-year minimum sentence, adding that law officers had 28 days from sentencing to make a decision on any changes.
Reporting by Sarah Young in London. Editing by Kate Holton, Andrew Cawthorne and Gareth Jones
Christian Ebbin recognized in national collegiate awards
Bermudian sailing prospect Christian Ebbin has capped off an outstanding sophomore season on the American collegiate circuit after being named to the prestigious Inter-Collegiate Sailing Association (ICSA) All-American team.
The 20-year-old Tulane University student-athlete was one of six Green Wave sailors honored in the national postseason awards, following an exceptional campaign that saw the Louisiana-based programme firmly establish itself among the elite of US collegiate sailing.
Ebbin was awarded an Honorable Mention All-American distinction as an Open Skipper, recognition reserved for the most clinical and consistent helmsmen competing across the highly competitive co-ed fleet racing divisions.
The accolade caps a remarkable year for the former St. George’s School student, who has transitioned seamlessly into the high-pressure environment of top-tier collegiate racing.
Throughout the 2025-2026 season, Ebbin has been the catalyst for Tulane’s national aspirations. His tactical maturity and composure under pressure were fully on display during the brutal SEISA Conference Championships, where he spearheaded a series of victories to book Tulane’s ticket to the fleet racing national finals.
Ebbin’s crowning moment of the spring came during the high-stakes College Open Eastern National Semifinals in South Florida. Navigating a chaotic and crowded B Division fleet in tricky coastal winds, he delivered a series of top-tier finishes—punctuated by a brilliant, clutch victory in the final race of the regatta—to secure a vital podium finish for Tulane.
The inclusion of six Tulane sailors on the All-American roster reflects a historic period of dominance for the Green Wave program under the guidance of head coach Charles Higgins.
By securing an All-American honorable mention in just his second year of collegiate eligibility, Ebbin joins an elite tier of Bermudian sailors who have successfully left an indelible mark on the US university circuit.
With two years of varsity competition still ahead of him, the young skipper’s trajectory suggests he will remain a central force for Tulane as they hunt for an elusive national fleet racing championship title in the seasons to come.
The 2026 Open Team Racing National Championship broadcast showcases the high-stakes environment on Lake Pontchartrain where Ebbin and his Tulane teammates battled the top collegiate sailing talent in the United States.
European shares rise as STMicroelectronics lifts tech; inflation backs ECB hike bets
The pan-European STOXX 600 index rose 0.7% to 625.34 points, while the technology sub-index gained 3.4%, making it the best-performing sector
International News via Reuters:
European shares rose on Tuesday, as a strong forecast from STMicroelectronics boosted technology stocks and investors assessed euro zone inflation data for signs of the Middle East conflict’s impact on the economy.
The pan-European STOXX 600 index rose 0.7% to 625.34 points, while the technology sub-index gained 3.4%, making it the best-performing sector.
Chipmaker STMicroelectronics rose 15.1% to hit €68.26, its highest since September 2000, after lifting revenue targets for its data centre business, signalling strong demand from the AI boom.
Other AI-related stocks such as Infineon and Schneider Electric added 9.5% and 4%, respectively.
“Semiconductors are probably no longer merely a traditional technology sector. They are gradually becoming the central infrastructure of tomorrow’s global economy,” said John Plassard, partner, head of investment strategy at Cité Gestion.
“The real question may therefore no longer be whether the cycle will eventually end, but rather how long this global AI supercycle can continue before markets genuinely begin to anticipate its conclusion.”
Risk appetite was also helped by tentative signs of progress in the U.S.-Iran peace talks to resolve a three-month long conflict. Iranian media reported that Tehran was reviewing a U.S. proposal to halt the war, though it had not communicated with Washington for several days.
Crude prices were steady after falling earlier in the day. Still, with oil trading around $95 a barrel, energy costs are expected to remain a strain, analysts said.
INFLATION JUMP STRENGTHENS CASE FOR ECB RATE HIKE
Euro zone inflation accelerated to 3.2% in May from 3.0% in April, driven by energy and services prices. The reading reinforced expectations that the European Central Bank will raise rates by 25 basis points at its meeting next week.
“The ECB is likely to opt for an ‘insurance’ rate hike,” said Carsten Brzeski, global head of macro at ING.
“Not that a rate hike will do a lot to affect inflation expectations, but it would be a symbolic move, stressing the ECB’s determination to act.”
Among other important movers, Abivax slumped 43.6% after the French drugmaker published the late-stage trial results for its inflammatory bowel drug, with investors focusing on safety concerns even as the treatment showed strong efficacy.
Prosus shares rose 9.4% after the Financial Times reported Tencent, the largest asset in the Dutch tech investor’s portfolio, is set to launch an embedded AI agent for its messaging platform WeChat’s 1.4 billion Chinese users.
British American Tobacco slipped 2.5% after the Dunhill cigarette maker flagged volume weakness in the heated tobacco and cigarette industry.
Meanwhile, a European Parliament committee voted to remove EU import duties on many U.S. goods, a step towards complying with the trade deal agreed with the United States last year.
Reporting by Utkarsh Tushar Hathi and Johann M Cherian in Bengaluru; Editing by Janane Venkatraman and Alex Richardson
Sweden weighs social media age limit of 15
Several European nations are seeking to rein in children’s use of social media after Australia took the lead with a world-first ban on under-16s in December last year
International News via Reuters:
Sweden should introduce a minimum age of 15 for the use of social media, a government-appointed commission recommended on Tuesday.
• Several European nations are seeking to rein in children’s use of social media after Australia took the lead with a world-first ban on under-16s in December last year.
• “The reasons for introducing an age limit nevertheless outweigh the benefits of continued free access to this type of media,” Swedish investigator Lisa Englund Krafft told a news conference with Social Affairs and Public Health Minister Jakob Forssmed.
• A ban can be formulated in a way that the platform companies would be responsible for the task of age verification, she said.
• In Sweden, there is currently a limit of 13 years for when children must have parental consent to create accounts on social media.
• “We are losing an entire generation to endless scrolling,” Forssmed told the press conference. “Screens and social media and their impact on the health of children and young people is one of the biggest challenges of our time.”
• In neighbouring Norway, the government said in April it plans to submit a bill to parliament by year-end on banning social media use by under-16s.
Reporting by Anna Ringstrom, Editing by William Maclean
Paramount seeks EU approval to buy Warner Bros; decision due July 7
The proposed $110 billion takeover would unite two of the entertainment industry’s most enduring franchises, though critics including some Hollywood stars have said it could endanger film and television jobs
International News via Reuters:
Paramount Skydance Corp has sought EU antitrust approval for its acquisition of Warner Bros Discovery, a European Commission filing showed on Tuesday.
• The proposed $110 billion takeover would unite two of the entertainment industry’s most enduring franchises, though critics including some Hollywood stars have said it could endanger film and television jobs.
• The Commission, which acts as EU competition enforcer, will decide by July 7 whether to clear the deal with or without remedies or open a full-scale investigation if it has serious concerns.
• Paramount is prepared to divest minor channels such as its children’s brands to address any competition concerns, sources told Reuters in February.
• U.S. antitrust regulators appear ready to approve the deal after a two-hour meeting at the Justice Department, Semafor reported last month.
Reporting by Foo Yun CheeEditing by David Goodman
Bank of England’s Bailey says public must be given confidence in 2% inflation target
Bailey, speaking at his annual appearance before the House of Lords’ Economic Affairs Committee, also said the answer to target misses was not to raise the inflation target to 3%
International News via Reuters:
Bank of England Governor Andrew Bailey said on Tuesday it was important to get UK inflation back to target and give households confidence about the central bank’s ability to do so.
Asked if having inflation above 2% for most of the 2020s meant the BoE had to rethink its price-targeting framework, Bailey said: “We have to focus more on how we manage the path back to target, and … ultimately get there because we’ve got to give the public confidence that the target is for real.”
Bailey, speaking at his annual appearance before the House of Lords’ Economic Affairs Committee, also said the answer to target misses was not to raise the inflation target to 3%.
British consumer price inflation fell to 2.8% in April and the BoE expects it to near 4% by the end of 2026, assuming energy prices fall gradually over the course of the year.
Under the central bank’s more adverse scenario, where energy prices increase further and there are widespread price rises for other goods and services, it forecast inflation could exceed 6% in early 2027, although that is still well below the peak of more than 11% reached in October 2022.
“It is enormously frustrating … I was expecting that I would be able to be here this afternoon, we would be at the inflation target, and I think the evidence bears out that we would have been. (But) we’re not, and I think the overshoot is pretty much entirely due to events in the Gulf,” Bailey said.
But there were some signs in figures published on Monday that the energy price shocks from the Middle East conflict may have less of a lasting impact than initially looked to be the case.
Public expectations for inflation in the coming years softened in May after reaching the highest since 2023 in March, although they are still higher than before the conflict.
Bailey voted to keep interest rates unchanged at 3.75% in April, when he was among an 8-1 majority, and last week said higher market interest rates gave the BoE time to decide if it needs to raise rates in response to the inflation shock from the Iran war.
Investors on Tuesday saw a roughly 90% chance that the BoE will keep borrowing costs unchanged this month, and were pricing in one or possibly two rate hikes by the end of the year.
Reporting by David Milliken and Suban Abdulla; additional reporting by Muvija M; Editing by Hugh Lawson
