ING: The Bank of England can remain on hold until more data is released

Golden Ten Data, April 22 – ING analyst James Smith stated in a report that even if the UK’s inflation rate approaches 4.0% this year—and the situation could become even more severe due to the Iran conflict and rising household energy costs—the Bank of England will still not raise interest rates at this time. The Bank of England remains in the dark, as this conflict has yet to be resolved. The limited survey data currently available indicates that there is no need for excessive concern about inflation at this point. Given the fragility of the labor market, we do not expect a rate hike next week, nor any rate hikes this year. Unless the inflation rate rises significantly above 4% (the Bank of England believes a rate above this level is more likely to trigger persistent price pressures), the Bank is unlikely to take action.