Bank of England Seen Keeping Rates Steady Amid Oil Price Spikes

The Bank of England (BoE) is likely to keep interest rates steady at 3.75 percent on Thursday, despite recent spikes in oil prices above $100 a barrel.

This decision would be a relief for new Prime Minister Andy Burnham, who has pledged to lower the cost of living in the UK.

Economists polled by Reuters do not see any chance of a rate rise this week, but there is a split on the longer-term outlook. Some expect a hike as early as September, while others think it will not happen until November or later.

BoE Chief Economist Huw Pill has expressed concerns that higher oil prices could lead to long-term inflation expectations among households and businesses.