BOE Set to Hold Interest Rates Amid Middle East Uncertainty

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

A number of experts, including those from Oxford Economics and Nomura, have forecast a seven-to-two vote in favor of keeping the current rate, according to recent reports.

The move comes as inflation has eased back to a 15-month low of 2.6% in June, thanks to a slowdown in food and fuel prices, which has provided some relief to the Monetary Policy Committee (MPC).

However, economists have warned that inflation is expected to swing back higher and further away from the Bank's 2% target as energy costs feed into household bills.