BOE Holds Rates Steady Amid Rising Inflation Concerns

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

This decision comes despite rising inflation, which is forecast to exceed 3% later in the year, up from 2.6% in June.

The UK economy has shown resilience, with little evidence of spillover from higher energy prices into the broader economy, giving the central bank room to stay on the sidelines.

A narrow majority of economists expect at least one rate cut by the middle of 2027, despite inflation remaining above 2% until late next year.