Bank of England Set to Hold Interest Rates Amid Rising Oil Prices

The Bank of England is poised to keep interest rates steady at 3.75% next week, despite growing uncertainty in the Middle East and rising oil prices.

Economists have predicted a seven-to-two vote in favor of maintaining the current rate, citing easing inflation and a slowdown in food and fuel prices.

However, the recent surge in oil prices above $100 per barrel has sparked concerns over inflation, which is expected to rise back to 3.25% later this year due to higher energy costs.

Thomas Pugh, chief economist at RSM UK, believes oil prices will 'largely' steer the path of interest rates for the next year.