Bank of England Sticks with 3.75% Rate Amid Oil Price Surge

The Bank of England is expected to maintain its interest rate at 3.75% on Thursday, despite an increase in oil prices above $100 a barrel linked to the US-Iran conflict.

British inflation fell to a 15-month low of 2.6% in June, which is below the central bank's forecasts.

The recent rise in oil prices has led economists to expect a rate increase later this year. According to interest-rate futures, there is a two-in-three chance of a quarter-point rate rise in September and nearly three increases by next June.

However, not all economists agree on the prospect of a rate rise. Henry Cook, a senior economist at Japan's MUFG, has withdrawn his previous forecast for a precautionary Bank of England rate increase similar to one expected from the European Central Bank.