Schroders Investment: Bank of England's interest rate hike threshold still very high

George Brown, of Schroders Investments, stated that the Bank of England is currently buying time by keeping its benchmark interest rate unchanged, and that the threshold for raising interest rates "remains high". The senior economist mentioned that a soft labor market and weak economic growth should limit the second-round effects of soaring energy prices. He also noted that the preliminary agreement to reopen the Strait of Hormuz should reduce some of the more extreme upside risks to energy prices. However, the Bank of England cannot afford to be complacent. Brown said, "If inflation expectations continue to rise, it may still be forced to take action."