MUFG says that there is an 'outside chance' the BOE will raise rates today

Commentary by Mitsubishi UFJ Financial Group analyst, Lee Hardman

He argues that "the conditions for a hike in May have been met, so why wait?". Adding that this means that there is an 'outside chance' the Bank of England will raise rates later at 1200 GMT.

However, Hardman believes that policy makers "may not want to signal an even faster pace of rate hikes this year - of up to three" by hiking rates today.

The OIS market has a 19.5% probability priced in for a hike today, and money market pricing has it well under 10%. The BOE will surely not pull off that kind of a surprise, but as mentioned the key to watch will be the votes.

Any dissent towards holding rates steady today would pave the way for a May rate hike.