Analysts say the possibility of the Bank of England raising interest rates has decreased but not completely ruled out

On April 15th, Kallum Pickering, Senior Economist at Peel Hunt, stated that despite inflation concerns, the possibility of the Bank of England raising interest rates in 2026 has decreased. The company expects the Middle East war to be resolved soon and the Strait of Hormuz to reopen, which may give the Bank of England room to cut interest rates this year. However, Pickering pointed out that if the Middle East war continues, the Bank of England may take aggressive action to stabilize inflation expectations. According to data from the London Stock Exchange Group, investors have fully digested the possibility of the Bank of England raising interest rates by 25 basis points in 2026, with a 40% chance of a second rate hike before the end of the year.