BOE Expected to Hold Rates as Oil Prices Rise

The Bank of England is expected to keep interest rates unchanged at 3.75% on Thursday, despite a recent rise in oil prices above $100 a barrel.

This decision comes as British inflation has fallen to a 15-month low of 2.6% in June, below the BoE's forecasts.

The central bank had forecasted inflation would peak at around 3.25-3.6% by the end of 2026 under two of its three scenarios for oil prices and other economic developments.

Economists surveyed by Reuters and financial markets do not expect the BoE to raise rates this week, but opinions differ on what the central bank will do in the coming months.