Pantheon Macro's Rob Wood says the Bank of England appears set to keep policy on hold for an extended period, although most MPC members acknowledge a risk that further rate hikes may be needed. Policymakers flagged the risk of oil prices remaining elevated, and noted recent inflation has undershot expectations but they see little evidence the Middle East conflict has caused a rapid demand shock. Pantheon Macro expects Bank Rate to remain at 3.75% through end-2027; unchanged guidance may disappoi

Pantheon Macro's Rob Wood says the Bank of England appears set to keep policy on hold for an extended period, although most MPC members acknowledge a risk that further rate hikes may be needed. Policymakers flagged the risk of oil prices remaining elevated, and noted recent inflation has undershot expectations but they see little evidence the Middle East conflict has caused a rapid demand shock. Pantheon Macro expects Bank Rate to remain at 3.75% through end-2027; unchanged guidance may disappoint markets after some had priced a chance of more than two MPC votes for a hike at the July meeting.