The Bank of England is widely expected to raise interest rates next month, despite an ongoing energy shock. Higher rates typically do not lower oil prices, but the central bank appears committed to this course of action.
Last month, the UK saw price inflation come in slightly higher than market forecasts. This development has likely reinforced the Bank of England's resolve to tighten monetary policy.
Andrew Bailey, the governor of the Bank of England, has not publicly commented on the upcoming decision. However, the market consensus suggests a rate hike is almost certain.
The decision comes amid broader economic uncertainty, particularly around energy prices. Analysts will be watching closely to see how the bank balances inflation concerns with the potential impact of higher rates on economic growth.