1353 GMT - Weakness in the U.K. labor market makes the current energy shock different from that seen in 2022, says Jessica Hinds at Fitch Ratings in a note. Persistently-high unemployment is likely to keep a lid on inflation and allow the Bank of England to ease its key rate towards 3%, Hinds says. "On the assumption that the oil price spike is relatively short lived, we would continue to think that the next move will be a cut, not a hike," she says. The central bank kept rates unchanged on Thursday. It indicated that a prolonged shock could prompt more restrictive policy, but that a weaker economy could warrant cuts. "Nevertheless, the risk to our view is that the uncertainty will encourage policymakers to be more cautious in their approach to loosening policy," Hinds says. (don.forbes@wsj.com)
(END) Dow Jones Newswires
March 19, 2026 09:53 ET (13:53 GMT)
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