Schroder Investment senior economist George Brown said the Bank of England is
buying time by keeping the policy rate unchanged and that the threshold for
further hikes remain high. He said a weak labor market and tepid growth should
limit second‑round effects from energy price spikes and that a preliminary deal
to reopen the Strait of Hormuz should reduce some extreme upside energy risk,
but warned the BoE could still be forced to act if inflation expectations
continue to rise.
