Ebury Analyst: Bank of England Likely to Remain Cautious on Rate Hikes

Ebury analyst Enrique Diaz-Alvarez has indicated that despite inflation risks, the Bank of England is expected to adopt a cautious approach to interest rate hikes. According to Jin10, Diaz-Alvarez highlighted the weak economic growth and fragile labor market conditions in the UK as reasons for the central bank's cautious stance. He warned that aggressive rate hikes could potentially push the UK into a recession. Data shows that investors have fully priced in expectations for the Bank of England to raise rates by 25 basis points twice before September.