BoE Expected to Keep Rates Steady Amid Inflation Concerns

The Bank of England is expected to keep interest rates steady on Thursday at 3.75%, according to economists polled by Reuters.

Despite concerns over inflation, Governor Andrew Bailey has stated that previously expected rate cuts are off the table due to the ongoing Iran war and its impact on energy prices.

The BoE lowered its forecast for peak inflation this year to just over 3.25% in June, down from a prediction of 3.6%-3.7% in April.

Many economists believe that rates remain high enough to lower inflation gradually, while others expect the next policy move to be a cut, not a hike.