BoE Set to Hold Interest Rates Amid Ongoing Inflation Pressures

The Bank of England is set to keep interest rates steady at 3.75% on Thursday, despite ongoing inflation pressures and rising oil prices.

The decision comes as Governor Andrew Bailey weighs the impact of the Iran war on the economy, which has seen the Strait of Hormuz closed for five months.

Bailey said in March that previously expected cuts to borrowing costs were off the table due to the war, and he is likely to stick to this stance.

Most economists polled by Reuters forecast a 7-2 vote to keep rates on hold, with rate futures markets pointing to a quarter-point hike by November and another one by March 2027.