1129 GMT - The Bank of England is unlikely to follow the European Central Bank in raising interest rates Thursday but this won't materially damage sterling sentiment, Bank of America analysts say in a note. There are concerns around the ECB making a potential policy error, they say. Second-round effects of elevated energy prices will be scrutinized and should argue for future U.K. rate rises but a more balanced approach to the risks of high inflation versus weak employment would be well received. If the price shock persists, the BOE could be seen as falling behind the curve but this isn't the case at present, they say. BofA expects the BOE to leave rates unchanged Thursday but raise rates in July and September. (renae.dyer@wsj.com)

(END) Dow Jones Newswires

June 17, 2026 07:29 ET (11:29 GMT)

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