BoE Holds Rates Amid Energy Price Hike Concerns

The Bank of England is expected to keep interest rates at 3.75% next week, according to Bank of America's analysis.

BofA projects a slowdown in quantitative tightening to £50 billion starting in October 2026 from the current £70 billion pace.

The bank anticipates a 6-3 vote split on a rate increase, with Pill, Greene and Mann voting for a hike. A small possibility exists that Lombardelli may also vote for a rate rise.

Energy prices have risen, but there is limited evidence of second-round effects or passthrough to core inflation and wage growth, according to the analysis.