“Omicron to make BoE more cautious over raising rates in near-term. A decision to leave rates on hold next week is better priced now which should help dampen negative GBP reaction. Dropping guidance for rate hikes in the coming months would be a bigger bearish surprise for GBP.
The timing of lift-off for rate hikes by the BoE and Fed appears to be narrowing considerably if the BoE delays raising rates again while the Fed speeds up tightening plans.