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

The Bank of England is expected to hold its base interest rate at 3.75% despite fresh uncertainty in the Middle East, according to economists.

Attacks in the region and US threats have reignited concerns over inflation, but experts still predict a majority of the Monetary Policy Committee (MPC) will opt for stability.

The latest meeting on July 30 comes as inflation has eased back to a 15-month low in June at 2.6%, with a slowdown in food and fuel prices providing some relief.

However, economists believe inflation is expected to swing back higher, reaching 3.25% later this year due to higher energy costs feeding into household bills from July.