BoE Stays Put on Interest Rate as Inflation Risks Persist

The Bank of England (BoE) is expected to keep its key interest rate at 3.75% for now, according to a Reuters poll of 70 economists.

Although inflation dipped to 2.6% in June, the brief de-escalation in tensions between Iran and other countries has reignited, pushing fuel prices up again.

A firm majority of respondents (58 out of 70) believe the BoE's key rate will remain at 3.75% through 2026, while a few see a small increase or decrease.

Ellie Henderson at Investec thinks there won't be a change this year, citing that policy is already in restrictive territory, but some economists worry about the impact of rising oil prices on inflation and interest rates.