BOE Seen Holding Rates Steady Amid Inflation Fears

A Reuters poll of 70 economists suggests that the Bank of England will leave its key interest rate unchanged at 3.75% after its meeting next week, and may hold rates steady for another year.

The poll was conducted in response to growing concern about inflation, which has been fueled by the recent resurgence of the US-Iran conflict and the subsequent spike in oil prices above $100 per barrel.

Despite a slight drop in the UK's headline inflation rate to 2.6% in June, economists believe that rates will not be cut anytime soon, with only four predicting a 25-basis-point reduction.

Sarah Breeden, deputy governor of the Bank of England, has expressed caution about raising interest rates, citing concerns about the strength of the economy and slack in the labor market as reasons to hold rates where they are.