The Bank of England is set to make its interest rate announcement on Thursday, with the meeting likely to result in a majority vote to keep rates on hold. However, the session is anticipated to highlight the Monetary Policy Committee's increasing unease regarding inflation risks stemming from the protracted energy crisis.

Following calls for caution from senior officials, including Governor Andrew Bailey and Deputy Governor Dave Ramsden, before acting on rising inflation risks, markets widely expect the central bank to leave its key interest rate unchanged at 3.75%.

"The momentum in the labour market has cooled significantly," stated Hetal Mehta, an economist at St James’s Place. "I don't think there is enough momentum at the moment to warrant a rate hike."

However, at least two rate-setters—Chief Economist Huw Pill and Monetary Policy Committee member Jonathan Haskel—have indicated they will push for an immediate increase in rates. Another MPC member, Catherine Mann, has suggested that a rate rise at some point cannot be ruled out if the energy crisis worsens.