BoE is reportedly divided on how to address energy-induced inflation and divisions are likely to reopen later this month over how aggressive it needs to be in tackling the impact of the Iran war, according to FT

The reported divisions within the Bank of England regarding their approach to tackling energy-induced inflation underscore the complexities they face, especially with the ongoing geopolitical turmoil related to the Iran war. This uncertainty may signal a potential shift in their policy stance that could influence expectations around interest rates, and traders should be cautious of volatility in GBP and fixed income as the debate unfolds.