BoE Set to Hold Interest Rates Amid Middle East Uncertainty

The Bank of England is set to hold interest rates at 3.75% despite fresh uncertainty in the Middle East, according to economists.

A majority of the Bank's rate-setting committee is expected to opt for holding the current rate, with a predicted seven-to-two vote in favour, said experts at Oxford Economics and Nomura.

The decision comes as inflation eases back to a 15-month low in June, at 2.6%, according to the Office for National Statistics (ONS).

However, economists have warned that inflation is now widely expected to swing back higher and further away from the Bank's 2% inflation target.