BoE Keeps Rates Steady Amid Oil Price Surge

The Bank of England is set to maintain its interest rate at 3.75% on Thursday, despite a recent surge in oil prices above $100 per barrel.

A spike in oil prices may test whether the BoE can avoid raising borrowing costs in response to the U.S.-Iran conflict.

The BoE's forecast for inflation has been revised downward three times this year, with the latest projection showing a 15-month low of 2.6% in June.

Economists polled by Reuters are split on the longer-term outlook, with some expecting a rate hike as soon as September and others predicting no increase this year.