1505 GMT - While the Bank of England is set to keep interest rates unchanged next week, its tone will likely become more cautious after recent re-escalation of tensions in the Middle East, UBS economists say in a note. The increase in energy prices is likely to be a concern for policymakers as they had previously argued that a more persistent energy shock would imply a greater risk of second-round effects occurring, they say. Rising expectations of hikes by the Federal Reserve, Bank of Japan, alongside the already-tightening European Central Bank, may put pressure on rate setters to be more proactive. Even if second-round effects are so far absent, reputation and risk-management considerations could tilt the BOE towards pre-emptive hikes, the economists say.