BOE Set to Hold Rates as Geopolitics Introduce Fresh Uncertainty

The Bank of England is expected to maintain interest rates at 3.75% on Thursday, according to economists.

A 7-2 split in favor of keeping rates on hold is forecasted by several experts, following recent inflation data showing the Consumer Prices Index slowed to 2.6% in June, its lowest level for 15 months.

However, renewed Middle East tensions and higher oil prices are introducing fresh uncertainty into the outlook, which could have implications for landlords adjusting rental strategies and property investors assessing acquisition timing.

Bank of England Chief Economist Huw Pill indicated earlier this month that interest rates may need to increase over the coming year if inflation proves more persistent than anticipated.