Preview: BoE To Remain on Hold, While The Stagflationary Shock Builds Up

In this paper, we discuss:

• The Bank of England is expected to remain on hold, maintaining a data-dependent, meeting-by-meeting approach;
• Rising stagflation risks, with weaker growth alongside persistent, energy-driven inflation;
• Inflation is expected to peak near 4%, while growth forecasts are being revised downward;
• Policymakers remain divided, balancing weak fundamentals against inflation risks;
• The growing policy trade-off between anchoring inflation expectations and supporting a slowing economy.

Download PDF: BOE Preview – April 2026