BOE Holds Rates Steady, Hike Chances Still High

Bank of America forecasts that the Bank of England will keep interest rates unchanged at 3.75% when it meets next week, with a slight possibility of a rate hike in the coming months.

The bank expects a 6-3 vote split among policymakers, with Pill, Greene, and Mann voting for an increase, while Lombardelli may also support a hike.

Despite rising energy prices, there is limited evidence that they will have a second-round effect on inflation and wage growth, according to the analysis by Bank of America.