The Bank of England likely has one more hike in its tightening cycle but it was a close call for a final quarter-point rate lift in May, according to a Reuters poll of economists who said the bigger risk was inflation being higher than they expect.
, prompting speculation for a pause. However, it kept the door open for more tightening if needed.
But among 15 gilt-edged market makers who participated in the survey, a strong majority of 11 forecast a pause in May, with only four expecting a hike. One of the main reasons analysts see policymakers struggling over whether to pause or hike is the economy is on the brink of recession, despite recently performing slightly better than expected.
Several analysts said what the BoE's Monetary Policy Committee does next month would depend on whether March inflation data due this week drops from double digits and gives hope a downward trend may take hold.
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