BoE Stays Put as Oil Prices Soar Past $100

The Bank of England is expected to maintain its current interest rate of 3.75% on Thursday, despite a recent surge in oil prices above $100 per barrel.

This decision comes as inflation in the UK has fallen to a 15-month low of 2.6% in June, below the BoE's forecasts.

According to Reuters, economists and financial markets are split on whether the BoE will raise rates in the future, with some predicting a quarter-point rise by September or November.

BoE Chief Economist Huw Pill has expressed concerns that another oil price shock could lead to higher inflation expectations for years to come, while Governor Andrew Bailey argues that the UK's lower inflation rate compared to the US and euro zone means it does not need to follow suit with rate hikes.