Bank of England governor Andrew Bailey is likely to lead a majority vote for interest rates to be kept steady on Thursday, but the meeting is set to reflect rising anxiety within the Monetary Policy Committee about the inflation risks posed by the prolonged energy crisis.
The MPC is widely expected to keep its key rate unchanged at 3.75 per cent after senior officials led by Bailey and deputy governor Sarah Breeden called for the central bank to tread carefully before acting on rising inflation risks.
Breeden told the FT last month that the BoE cannot afford to be “trigger-happy” on rates given the damage geopolitical turmoil is doing to the economy and the loosening labour market.