BoE Seen Keeping Rates Steady Amid Oil Price Spike

The Bank of England (BoE) is likely to keep interest rates unchanged at 3.75 percent on Thursday, despite a recent spike in oil prices above $100 a barrel, according to economists polled by Reuters.

British inflation has come in below the BoE's forecasts, dropping to a 15-month low of 2.6 percent in June. This is lower than the US and the euro zone, where the European Central Bank (ECB) looks likely to raise rates for a second time this year.

Economists are divided on the longer-term outlook, with interest rate futures pricing in a two-in-three chance of a quarter-point BoE rate rise in September. However, only a handful of economists expect a hike this year.