However, Neiss thinks the BoE is unlikely to raise interest rates as much as markets have priced in.
In a Reuters poll this week, economists predicted the BoE would raise interest rates just twice more, taking rates to a peak of 5% by August or September.
The BoE faces three big challenges when assessing how much more rate tightening it needs to do.
Fewer households have mortgages and more are on fixed rates - so a key channel for higher interest rates to affect the economy now operates with a delay.
"If the Bank of England accelerated policy tightening now, that would smack of panic or a loss of control," McGuire said.
Persons:
Henry Nicholls, BoE, BoE Governor Andrew Bailey, Bailey, Katharine Neiss, Neiss, Christine Lagarde, Richard McGuire, Swati Dhingra, Silvana Tenreyro, Megan Greene, Tenreyro, McGuire, Yoruk Bahceli, David Milliken, Toby Chopra
Organizations:
Bank of England, REUTERS, of, U.S . Federal Reserve, European Central Bank, Italy, Fed, ECB, Reuters, homebuyers, Rabobank, MPC, Thomson
Locations:
City, London, Britain, of England