BOE Holds Rates as Inflation Rises Above Target

The Bank of England (BOE) is expected to keep interest rates unchanged at 3.75% for the rest of the year, according to a Reuters poll of economists.

This decision is based on the BOE's view that the UK economy has remained resilient despite higher energy prices, with little evidence of spillover into the broader economy.

Inflation rose to 2.9% in July, above the BOE's 2% target, but economists expect the BOE to leave rates unchanged due to a lack of second-round effects from the energy shock.

Nearly 90% of economists polled by Reuters expect the Monetary Policy Committee (MPC) to keep rates at 3.75%, with six expecting a hike and two forecasting a cut by year-end.