Dutch International: With concerns about the second-round inflation effect fading, the Bank of England is expected to stand pat in the long term.

James Smith of the Netherlands International Group stated in a report that the decision of the Bank of England to maintain the benchmark interest rate at 3.75% indicates that they will likely remain unchanged in the long term, with the next step possibly being a rate cut. He said, "Today's decision does not change our view that the next step could be a rate cut in 2027." Smith noted that it would require significant effort to persuade the Bank of England's five neutral to dovish decision-makers to vote in favor of a rate hike, as they seem confident that a second round of inflation is unlikely to occur. If the ceasefire agreement between the US and Iran is upheld, and energy prices remain at current levels, the inflation rate for this year may peak at 3.5%. He added that this is below the 4% threshold identified by Bank of England research as a potential trigger for sustained price pressures.