Institution: The Bank of England's rate hike threshold remains very high

Golden Ten Data, June 18 – Schroders Senior Economist George Brown stated that by keeping the benchmark interest rate unchanged, the Bank of England is currently buying time, and the threshold for raising rates remains “very high.” A weak labor market and sluggish economic growth should limit the second-round effects caused by soaring energy prices. The preliminary agreement to reopen the Strait of Hormuz should also reduce some of the more extreme upside risks facing energy prices. However, the Bank of England cannot afford to be complacent. “If inflation expectations continue to rise, the Bank of England may still be forced to take action.”