BoE Holds Steady as Oil Prices Spike Above $100

The Bank of England is likely to keep interest rates unchanged at 3.75% on Thursday, despite a recent spike in oil prices above $100 a barrel.

According to Reuters, Britain's inflation has come in below the BoE's forecasts, dropping to a 15-month low of 2.6% in June.

BoE Chief Economist Huw Pill fears that households and businesses may expect higher inflation for years to come due to the recent oil price shock.

However, Governor Andrew Bailey has said that the BoE does not need to raise rates like the ECB because it had cut them by less before the Iran war started at the end of February.