0944 GMT - The Bank of England is less likely to raise interest rates in 2026 despite concerns about inflation, Peel Hunt's Kallum Pickering says in a note. Peel Hunt expects the Middle East war to be resolved soon and the Strait of Hormuz to be reopened, which could enable the BOE to cut interest rates this year. However, if the Middle East war rages on, "the BoE could be forced to take drastic action to shore up confidence and keep inflation expectations anchored," Pickering says. Investors fully price in the possibility of one quarter-point interest-rate rise by the Bank of England in 2026, and a 40% chance of a second rate increase by year-end, LSEG data show. (miriam.mukuru@wsj.com)
(END) Dow Jones Newswires
April 15, 2026 05:44 ET (09:44 GMT)
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