The Bank of England (BoE) announced a surprise interest rate cut to 0.1% on March 11, a reduction from 0.25%, a move primarily aimed at cushioning the economic blow of the COVID-19 pandemic. However, the bank also indicated that inflation could prove more persistent than initially expected, and policymakers now anticipate CPI inflation to remain above its 2% target until the second half of 2022. This suggests that the BoE may have to raise rates sooner than the market currently expects.