Bank of England Set to Hold Interest Rates Amid Middle East Uncertainty

The Bank of England is expected to hold its interest rates at 3.75% next week, despite fresh uncertainty in the Middle East.

Economists predict a seven-to-two vote in favour of keeping the current rate, according to experts at Oxford Economics and Nomura.

This decision comes as inflation in the UK has eased back to a 15-month low of 2.6% in June, following a slowdown in food and fuel prices.

However, economists warn that inflation is expected to swing back higher later this year, with oil prices surging above $100 per barrel due to recent attacks on shipping in the Red Sea.