Bank of England expected to hold interest rates despite rising oil prices and inflation

Current Outlook

The Bank of England is widely expected to hold interest rates steady even as rising energy prices and inflation stir fresh talk of a rate hike later this year. While the US Federal Reserve has taken a lead with rate hikes, the central bank in the UK faces tough choices and is expected to slow its bond-selling programme.

Market Pressures

Recent surges in oil prices have revived the prospect of a potential interest rate rise before the year ends. However, analysts and live reports from major financial publications indicate that officials will likely keep rates on hold during the current meeting while closely monitoring these growing cost pressures.