Review: BoE Unanimously on Hold, While Being Ready to Act in Either Direction Depending on the Duration of the War

In this paper, we discuss:

• The Bank of England kept rates unchanged, reflecting heightened uncertainty;
• The energy shock is raising inflation while weakening growth, creating a policy trade-off;
• Policymakers have paused, with the next move potentially being a rate hike;
• Inflation is expected to rise again due to higher energy prices;
• The policy outlook remains conditional on the duration of the shock.

Download PDF: BOE Review – March 2026