BoE preview: Bank Rate to remain unchanged at 3.75% amid energy price shock

The Bank of England is expected to keep the Bank Rate unchanged at 3.75% in a 7-2 vote split amid the energy price shock. The easing bias will likely be maintained but the timing will hinge on the US-Iran war. The Bank of England is expected to keep the Bank Rate unchanged at 3.75% in a 7-2 vote… The Bank of England is expected to keep the Bank Rate unchanged at 3.75% in a 7-2 vote split. The central bank is likely to adopt a 'wait and see' approach amid the US-Iran war and the energy price... The Bank of England is expected to keep the Bank Rate unchanged at 3.75% in a 7-2 vote split. The central bank is likely to adopt a 'wait and see' approach amid the US-Iran war and the energy price shock, but maintain an easing bias. The extent and timing for further rate cuts will likely hinge on the duration of the US-Iran war as the BoE should acknowledge that policy… For traders, releases like this can quickly shift rate expectations, currency direction, index futures and broad risk sentiment. Watch the next move in the dollar, front-end yields and index futures to see whether the market prices this release as a true surprise or only a passing headline.