“The hope may well have been that rising prices were transitory in nature, but with Omicron spreading and signs of a further supply chain squeeze already showing, that transitory period looks like it’s lengthening.”
Expectations over the Bank of England’s decision-making have fluctuated considerably since a surprise vote to hold interest rates in November.
A booming jobs market since then has led to growing predictions of a rate rise, but that’s now been heavily overshadowed by the spread of Omicron.
Ed Monk, associate director at Fidelity International, explained the Bank was “caught between its two primary functions- controlling inflation and ensuring financial stability”.