BoE weighs up inflation pressure and Omicron for rates decision

• The Bank of England faces a fresh decision next week on whether to become the first of the world's major central banks to raise interest rates since the onset of the coronavirus pandemic.
• The BoE shocked financial markets on Nov. 4 when its policymakers voted 7-2 to keep Bank Rate at 0.1%, even as it said inflation was heading towards 5%. 
• Many investors had read previous comments by Governor Andrew Bailey as meaning a November rate hike was extremely likely. Since then, data has suggested the labour market withstood the end of the Government's furlough scheme - something the BoE wanted to see before any rate hike - and inflation hit a 10-year high of 4.2% in October. 
• But the emergence of the Omicron coronavirus variant has prompted some MPC officials to sound a new note of caution about the economy's recovery, although Omicron could also add to inflation pressures by aggravating supply chain problems.

(Source: Reuters)