BOE Holds Rates as Oil Price Surge Sparks Inflation Fears

The Bank of England's Monetary Policy Committee is set to hold interest rates at 3.75 per cent in a split vote on Thursday, despite concerns over inflation and rising oil prices.

A surge in Brent crude oil prices has pushed the price to just shy of $100 per barrel due to the re-emergence of conflict in the Middle East, which could influence the Bank's members.

The majority of analysts expect interest rates to remain unchanged, but some predict that two members, Huw Pill and Megan Greene, may back a hike in interest rates as they had done previously.

Catherine Mann is also seen as a potential dissenter, while Clare Lombardelli could take a more cautious view on inflation. Economists predict that inflation will top three per cent in the second half of the year, and possibly reach 3.5 per cent, which could prompt the Bank to change course.