UBS Investment Bank economists said in a note the Bank of England’s probability
of raising rates in coming months has fallen as sluggish growth and a softer
labour market reduce the case for further tightening. They said the Bank can
address second‑round inflation risks by keeping policy at current restrictive
levels for longer rather than hiking. Still, rising oil prices and some Monetary
Policy Committee members’ tilt toward hikes mean a rate rise cannot be ruled
out.