A senior economist at Schroders Investment Management said the Bank of England is buying time by keeping its benchmark interest rate unchanged, while the threshold for further rate increases remains “still very high.”
According to Jin10, Schroders senior economist George Brown said a weak labor market and modest economic growth should limit second-round effects from a surge in energy prices.
Brown also said a preliminary agreement to reopen the Strait of Hormuz should reduce some of the more extreme upside risks to energy prices.
However, he cautioned that the Bank of England cannot be complacent. Brown said the central bank could still be forced to act if inflation expectations continue to rise.
Schroders Economist Says Bank of England Is Buying Time as Rate-Hike Bar Remains High
2026-06-18 11:52:43
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