0948 GMT - Bank of England policymakers will be reassured that they can leave interest rates on hold with headline inflation holding at 2.8% in May and oil prices dropping this week, Fitch Ratings' Economics' Jessica Hinds says. There was little sign that higher energy prices had pushed up the cost of other items, she says in a note. Admittedly, the 13% rise in the Ofgem price cap next month will still lift headline inflation in the second half of the year. "But the sharp drop in the oil price this week, providing it is sustained, will guard against a further rise in inflation expectations." This combined with a weak labor market, details of which are published Thursday, means the BOE will likely leave rates on hold through 2026 before resuming cuts in 2027, Hinds says.(edward.frankl@wsj.com)

(END) Dow Jones Newswires

1108 GMT - Bank of England policymakers will be reassured that they can leave interest rates on hold, with headline inflation holding at 2.8% in May and oil prices dropping this week, says Jessica Hinds of Fitch Ratings' Economics team. There was little sign that higher energy prices had pushed up the cost of other items, she says in a note. Admittedly, the 13% rise in the Ofgem price cap next month will still lift headline inflation in the second half of the year. "But the sharp drop in the oil price this week, providing it is sustained, will guard against a further rise in inflation expectations." Combined with a weak labor market, details of which are published Thursday, it means the BOE will likely leave rates on hold through 2026 before resuming cuts in 2027, Hinds says.(edward.frankl@wsj.com)

(END) Dow Jones Newswires

June 17, 2026 07:08 ET (11:08 GMT)

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