Bank of England Interest Rate Decision Looms as Oil Prices Surge

The Bank of England is set to announce its September interest rate decision on Thursday, with the current Bank Rate at 3.75 percent and August inflation at 3.1 percent.

The decision comes after a super-week of central banks, with the European Central Bank raising its deposit rate to 2.50 percent on September 10 and the US Federal Reserve increasing its benchmark rate by a quarter point on Wednesday to a target range of 3.75 to 4.00 percent.

The rising oil prices have added to the uncertainty, with Brent crude gaining 8.84 percent last week to close at $104.31 per barrel after touching $109.97 per barrel.

Three members of the Monetary Policy Committee voted for a hike to 4 percent in July: Megan Greene, Catherine Mann, and chief economist Huw Pill. Pill has been warning that a status quo bias could leave policy behind the curve in addressing emerging inflationary risks.