Bank of England to hold rates for remainder of year despite inflation risks

Elizabeth Martins, UK economist at HSBC, said, "a big rebound in energy prices would certainly change things. But the real game changer for the MPC, I think, is around second-round effects."

Crude oil LCOc1 prices, trading at about $91 a barrel, are still about 25% above pre-war levels as the Strait of Hormuz, a key shipping route for Middle Eastern oil, is still closed.

The most recent set of labour market data showed weak hiring and pay growth within the MPC's tolerance range, which economists said is likely to keep policymakers on the sidelines for now.

"This data, we think, is in line with the BoE's read of the labour market - loose and as such a firm barrier to second-round effects from the energy shock," noted Bruna Skarica, chief UK economist at Morgan Stanley.