Standard Chartered and Morgan Stanley now expect the Bank of England (BoE) to cut interest rates in the second quarter, delaying forecasts due to inflation concerns from the Middle East conflict. Oil and gas prices have risen by about 50% and 90% since late February, raising inflation risks that could force central banks, including the BoE, to alter their easing path. Markets are now pricing a 98% chance that the BoEs will hold rates this month. StanChart warns that prolonged energy price spikes could add up to 1.5 percentage points to eurozone inflation. Morgan Stanley also dropped its call for a March rate cut and now expects the Boe to ease in April, followed by cuts in November and February 2027.