Matthew Ryan, Senior Market Analyst at Ebury, said there was a “non-negligible chance of a 50 basis point increase”, though he also predicted a 0.25 percent increase would be more likely.
He also predicted voting could be more split with “a good chance that at least a couple of MPC members opt to hold rates steady.”
He explained: “Recent communications have been surprisingly dovish, particularly Governor Bailey’s warning over the risk of a UK recession, and we now see a much greater chance that the BoE will undershoot market expectations for hikes this year, rather than exceed them.”
Samuel Tombs, Chief UK Economist at Pantheon Macroeconomics, said: “I wouldn’t completely rule out a 50bp hike but think 25bp is far more likely.”
In addition he predicted the Bank would “double down” on plans for future tightening to be “modest”.