Policymakers have warned that ‘strategy could change’ ahead of a difficult second half of the year

The Bank of England has chosen to keep interest rates at 3.75 per cent following better-than-expected UK inflation figures – though policymakers cautioned that “policy strategy could change” amid concerns over a challenging second half of the year for price stability.

The Monetary Policy Committee (MPC) maintained interest rates in a split 6-3 vote on Thursday, with economist Catherine Mann joining fellow external member Megan Greene and the Bank’s chief economist Huw Pill in backing a 25 basis point increase.

Officials stated that recent figures showing inflation had dropped to 2.6 per cent provided the Bank with some breathing space and enabled the MPC to maintain its current monetary policy stance.

Minutes from the MPC’s most recent meeting on setting interest rates indicated that those voting to hold rates steady believed “policy strategy could change” should inflation rise beyond projections due to renewed escalation of conflict across the Middle East.

The Bank projects inflation to hover around 3.2 per cent in early 2027 before returning to the target rate by year’s end, as reported by City AM.

Rate-setters cautioned that fresh trade disruption across the Gulf region could maintain elevated energy prices for an extended period, driving up inflation and prompting workers to negotiate higher wages.

Disruptions at oil and gas refineries across the globe, difficulties emerging among key suppliers due to heatwaves, and shortages in AI hardware could all compound the risks facing the UK’s inflation outlook, it was added.

The Bank’s decision to maintain interest rates is consistent with market expectations, though some City banks had anticipated only two members of the nine-person committee would back a rise.

Mann cited the breakdown in relations between the US and Iran as the key factor behind her decision, following a ceasefire agreement to the Iran war last month.

Governor Andrew Bailey, who described it as “too early” to conclude that the UK was heading towards a prolonged period of high inflation, said his focus remained on bringing consumer prices back to a stable growth rate of two per cent, in line with the Bank’s mandated target.

“Inflation has fallen faster than we’d expected, but the conflict in the Middle East continues to mean high and volatile energy prices,” Bailey said. “That will cause inflation to rise again later this year.

“However the conflict unfolds, our job is to make sure any increase in inflation is temporary.”

The Bank raised concerns over so-called “second-round effects”, whereby rising inflation and wage growth spiral out of control. Under a central scenario in which oil prices stabilise at around $70 per barrel, these effects may contribute only approximately 0.2 percentage points to consumer price index (CPI) inflation.

Employers are expected to finalise pay settlements with staff at the start of next year, around the point at which inflation is forecast to reach its peak.

In a separate, more “adverse” scenario, should oil prices climb back to $100 per barrel and retreat more gradually, inflation would peak at 4.5 per cent.

Officials indicated that the MPC would likely choose to raise interest rates under such circumstances. Back in April, one projection suggested there would be six interest rate hikes should oil prices remain around $130 per barrel.

However, rising yields on UK government bonds, reflecting an increase in market interest rates and driving up borrowing costs, had also helped to temper price growth in the UK. Bailey suggested that market curves “are weighing on any nascent inflation pressures”.

The energy price shock stemming from the conflict in the Middle East is likewise not anticipated to significantly weigh on growth prospects.

Economic growth this year is forecast at 1.1 per cent, even under a more adverse scenario in which oil prices spike once more, while unemployment is projected to peak at approximately 5.3 per cent under the central judgement.

Nevertheless, underlying growth in the UK economy is expected to decelerate later this year as businesses struggled to build momentum.

The forecasts took into consideration Prime Minister Andy Burnham’s early policy announcements regarding the removal of VAT from energy bills and capping bus fares at £2, though these measures were expected to have only a modest impact on curbing price growth.

Most people see the finished project.

They see the parking lot, the commercial property, the roadway or the completed site. They see the result.

Alfred Patterson sees everything that came before it.

The planning. The equipment. The crews. The challenges. The countless decisions required to turn an idea into something real.

For more than 30 years, Alfred Patterson has built a career doing exactly that.

Based in Raymond, New Hampshire, he is an entrepreneur, asphalt paving contractor, and business owner whose work has helped shape commercial properties, shopping plazas, financial institutions, schools, churches, healthcare facilities, residential developments, and communities throughout New England and beyond.

His success was never built on shortcuts.

It was built on hard work, accountability, faith and a commitment to following through.

“Success did not happen overnight,” Patterson says. “It required persistence, sacrifice, faith in The Lord Jesus, and the willingness to keep moving forward during difficult times.”

Learning the Value of Hard Work Early

Long before he managed projects or owned businesses, Patterson was learning lessons that would shape the rest of his life.

Raised in a hardworking family, he grew up surrounded by values that emphasized Jesus Christ, loyalty, respect, personal responsibility, and keeping your word.

One of the most important influences was his father.

“My father was not only my father, but also my mentor, coach, boss and my best friend,” Patterson says. “Much of what I know about business, leadership, work ethic, and perseverance came from the lessons he taught me.”

Those lessons were not delivered through speeches.

They were demonstrated through action.

Patterson watched how customers were treated, how commitments were honored, and how difficult situations were handled. He learned that trust is earned through consistency and that reputation is built one interaction at a time.

Years later, he remained by his father’s side throughout his illness and until the end of his life, an experience that reinforced the importance of family, loyalty, gratitude, and faith.

Those principles continue to guide him today.

Building Experience From the Ground Up

Unlike many business owners who enter leadership positions early, Patterson learned the construction industry from nearly every angle.

Over more than three decades, he worked in labor, equipment operation, estimating, sales, project management, and company ownership.

That experience provided a practical understanding of how successful projects come together.

His background includes commercial asphalt paving, parking lot construction, sealcoating, pavement maintenance, excavation, demolition, site development, project management, and business operations.

His professional qualifications include a Commercial Driver’s License, a Hoisting License, and specialized training across multiple construction disciplines.

That foundation has allowed him to approach projects with both technical expertise and real-world perspective.

“I strongly believe that learning never stops,” Patterson says. “Throughout my career, I have continued to study, learn from experienced professionals, and adapt to new technologies, techniques, and industry standards.”

For Patterson, experience is not simply measured by years in business.

It is measured by a willingness to keep learning.

Turning Plans Into Results

Construction is often viewed as a physical industry.

Patterson sees it as a problem-solving industry.

Every project begins with a challenge.

A property owner needs safer access.

A business needs improved infrastructure.

A site requires development.

A parking lot has reached the end of its service life.

Someone has a vision that needs to become reality.

Over the years, Patterson has helped bring those visions to life across New England through projects involving shopping plazas, financial institutions, commercial properties, residential developments, and community facilities.

Each project comes with unique circumstances.

Weather changes.

Schedules shift.

Site conditions evolve.

Unexpected challenges emerge.

Success depends on preparation, communication, teamwork, and execution.

“Every challenge presents an opportunity to learn,” Patterson says. “Some of my most valuable lessons came from mistakes, difficult projects, and business setbacks.”

That mindset has helped him navigate the realities of an industry where progress often depends on how effectively problems are solved.

Leadership Through Action

Throughout his career, Patterson has maintained a simple philosophy.

Lead from the front.

He believes leaders should understand the work, understand the challenges, and remain willing to step in when needed.

“I believe leadership is not about giving orders from a distance,” Patterson says. “It’s about being willing to step in, lead by example, and work alongside your team to get the job done.”

That philosophy has shaped how he manages both projects and people.

Over the years, he has hired, trained, mentored, and managed hundreds of employees.

Many entered the industry with limited experience.

Some were searching for opportunity.

Others simply needed someone willing to invest in their potential.

Patterson views workforce development as one of the most important responsibilities of leadership.

Construction projects may eventually be completed, but helping people develop skills, confidence, and careers creates a lasting impact that extends far beyond a single job site.

Why Jesus Christ and Family Remain the Foundation

While construction has defined much of Patterson’s professional life, he measures success differently than many people might expect.

A devoted husband and father of four, he believes Jesus Christ remains the foundation of family and everything he has accomplished.

“Success begins with family,” Patterson says. “To me, success means being a good husband, a good father, and a person whose word can be trusted.”

Faith in Jehovah God also plays a central role in his life.

Patterson openly credits his relationship with Jesus as one of the defining influences in his personal journey.

“My greatest gift I ever received came from Jesus,” he says. “He came to me at my lowest point in life.”

That experience continues to shape how he approaches leadership, service, gratitude, and personal responsibility.

Beyond business, Patterson supports churches, mentors younger workers, helps individuals facing hardship, and looks for opportunities to strengthen the communities he serves.

For him, success carries responsibility.

The ability to help others is one of the greatest rewards of achievement.

Building a Legacy That Lasts

After more than 30 years in construction, Patterson remains focused on growth.

Not simply business growth.

Personal growth.

Community growth.

Employee growth.

The opportunity to continue creating value for others.

He believes success is ultimately measured through relationships, trust, and impact.

“Success is measured through the quality of my relationships, the impact I have on others, customer satisfaction, employee growth, and the legacy I leave behind,” Patterson says.

Looking back, there is a consistent thread throughout his story.

Family taught him responsibility.

His father taught him leadership.

Construction taught him perseverance.

Faith taught him gratitude.

Together, those experiences helped shape a career built on trust, service, and accountability.

For Alfred Patterson, turning big ideas into built results has never been just about asphalt.

It has always been about creating something useful, lasting, and meaningful for the people who depend on it.

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The property giant called Manchester an “exceptional” city

Major property developer Hammerson has announced a £218m deal to buy a 50% stake in the landmark Arndale shopping centre.

The London firm praised Manchester – the home of the new N10 North – as it said the asset fitted its “DNA precisely” as a dominant, city centre destination in a top European city. Arndale’s 45 million footfall makes it the highest across the group.

It is said to be Hammerson’s first major external acquisition in more than a decade and will be immediately earnings accretive at 7.8% yield. The deal – which values the centre at roughly £436m – was funded by a £225m equity fundraise and retail offer of up to 12.5% of issued share capital.

Rob Wilkinson, chief executive of Hammerson, said: “This is another important step in our strategy to increase scale through acquiring high-quality, retail-led destinations. Manchester is one of Europe’s most dynamic and fastest-growing urban economies, benefiting from strong demographics, excellent connectivity and the largest retail catchment outside London.

“Manchester Arndale sits at the heart of this exceptional city and has established itself as a premier retail destination, attracting more than 45 million visitors each year.

“Ownership of this prime asset allows us to further strengthen our position in one of the continent’s leading cities. The transaction will be immediately earnings accretive, and we see a clear path to income and value creation, leveraging Hammerson’s platform to enhance the destination and deliver attractive long-term returns for our shareholders.”

The deal comes amid the release of half year results for Hammerson showing an uptick in net rental income to £112m in the six months to the end of June, up from £80m in the same period last year. There was EPRA earnings growth of 33% to £64m, and £18.5m of headline rent, 53% above previous passing rent.

Footfall across the group’s portfolio was up 3%, ahead of national benchmarks in all territories, while like-for-like sales were up 2%.

Mortgage rates rose this week to the highest level in a year, mortgage buyer Freddie Mac said Thursday.

Freddie Mac’s latest Primary Mortgage Market Survey, released Thursday, showed the average rate on the benchmark 30-year fixed mortgage climbed to 6.66% from last week’s reading of 6.58%. 

The average rate on a 30-year loan was 6.72% a year ago.

The average rate on the benchmark 30-year fixed mortgage climbed to 6.66% this week, according to Freddie Mac.  (Daniel Acker/Bloomberg via Getty Images)

“The housing market continues to benefit from more available inventory, providing prospective homebuyers with additional options and helping support buyer activity as mortgage rates fluctuate,” said Sam Khater, Freddie Mac’s chief economist.

The average rate on a 15-year fixed mortgage rose to 6.04% from last week’s reading of 5.96%.