The Bank of England has revised its energy-price shock scenarios, reducing the likelihood of the most extreme outcomes. This adjustment reflects a perceived stabilization in energy markets following a recent surge in oil and gas prices due to geopolitical tensions. The BoE estimates that margins are now absorbing more cost pressure, which could mitigate inflationary effects. The risk of second-round effects from energy costs on wages and prices has decreased. Current odds of crude oil reaching a new all-time high by year-end stand at 5.9% for September 30 and 14.5% for December 31.
Source: Read the original article
