1244 GMT - The Bank of England is expected to leave rates unchanged next week, but will remain on guard, analysts at Santander say in a note. "Policymakers are likely to judge that existing monetary conditions remain sufficiently restrictive to continue to play for time while the precise threat of persistent inflation risks stemming from the Middle East shock is assessed," they say. For now, softer inflation and a weak labor market point to limited risks of second-round price growth effects, but this could change if the war in Iran drags on. "Ultimately, if crisis duration remains a dominant concern after the summer, we see a good chance of the BOE being forced to hike come September." (don.forbes@wsj.com)
(END) Dow Jones Newswires
June 12, 2026 08:45 ET (12:45 GMT)
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