1252 GMT - The Bank of England preferred to keep interest rates on hold on Thursday after investors rapidly shifted from pricing in a gradual easing of rates this year to a potential rate hike, says KPMG U.K. chief economist Yael Selfin. Key for the central bank will be the extent of second-round effects from the energy shock and how much that could risk reigniting inflationary pressures, she says in a note. "For that reason, the bank is likely to discount softer signals from the labor market and the wider economy, placing greater weight on underlying price indicators in the coming months." However, despite the BOE's tone, a rate cut remains possible later this year once the energy shock impact begins to ease and inflation falls as expected, Selfin says. (edward.frankl@wsj.com)
(END) Dow Jones Newswires
March 19, 2026 08:52 ET (12:52 GMT)
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