But with an energy price shock sending inflation expectations in the wrong direction, we are lucky the MPC didn’t hike rates this time. The markets are now expecting a rate hike towards the end of summer after inevitably higher energy prices lead to higher inflation.

The Federal Reserve voted Wednesday to hold its interest rate target steady as inflation remains elevated. After a two-day meeting in Washington, the Fed’s monetary policy committee announced it would hold its rate target at a range of 3.

The Bank of England's nine-member monetary policy committee voted unanimously to hold interest rates at 3.75%.