BOE Expected to Hold Rates Steady Amid Inflation Risks

The Bank of England (BOE) is likely to hold interest rates steady at 3.75% for the remainder of the year, despite inflation risks, according to a Reuters poll of economists.

This decision comes as the UK economy remains resilient, with minimal evidence of spillover from higher energy prices into the broader economy. This has given the central bank room to stay on the sidelines.

Inflation is expected to rise to 2.9% in July, further above the BOE's 2% target, but the central bank forecasts inflation to peak above 3% later this year.

Nearly 90% of economists polled by Reuters expect the Monetary Policy Committee to leave rates unchanged at 3.75% this year, up from 83% last month.