Macquarie: If the Middle East conflict ends, the policy stance of the Bank of England and the European Central Bank is expected to become more dovish.

Golden Ten Data reported on April 16 that Macquarie Bank strategists Thierry Wizman and Gareth Berry noted in a report that the most hawkish central banks in the face of rising oil prices will return to their pre-war policy stance, provided a peace agreement is reached and oil prices remain low. In our view, the Bank of England (and perhaps the European Central Bank) have the most room to revert back to their pre-war stance, as they became particularly hawkish since the outbreak of war between the United States and Iran. Therefore, these policy rate expectations may become less "hawkish".