BoE to Hold Rates Despite Middle East Tensions and Rising Oil Prices

The Bank of England is expected to keep interest rates steady at 3.75% next week, despite growing tensions in the Middle East and rising oil prices.

Economists have predicted a seven-to-two vote in favor of holding the current rate, with experts from Oxford Economics and Nomura backing this view.

The recent decline in inflation to a 15-month low of 2.6% in June has provided some relief for the Bank's Monetary Policy Committee (MPC), which uses interest rates as a tool to control inflation.

However, economists believe that inflation will rise back higher later this year, driven by higher energy costs and potential supply disruptions in the Middle East.