BoE Holds Fire on Interest Rates Amid Middle East Uncertainty

Despite growing uncertainty in the Middle East and US threats, economists predict that the Bank of England will hold interest rates steady at 3.75% next week.

The Monetary Policy Committee (MPC) is set to meet on July 30, with a majority expected to vote against raising the base rate from its current level.

Economists at Oxford Economics and Nomura have predicted another seven-to-two vote in favour of keeping interest rates at their current level.

The decision comes as inflation is expected to rise again, despite recent easing to a 15-month low of 2.6% in June, according to the Office for National Statistics (ONS).

Oil prices have surged above $100 per barrel amid renewed hostilities in the Middle East, increasing concerns over potential supply disruptions and higher energy costs.