The UK's BoE is expected to hold interest rates steady amid rising oil prices.

Huoxing Finance reports that on July 27, economists predict that, amid the renewed outbreak of conflict in the Middle East and another surge in energy prices, the Bank of England will take a hawkish stance at this week’s meeting while keeping interest rates unchanged. Since the Monetary Policy Committee’s last meeting in June, the collapse of the U.S.-Iran ceasefire agreement has pushed global oil prices back to around $100 per barrel, while European natural gas prices have soared to their highest levels since the early stages of the conflict. If shipping routes in the Gulf remain disrupted, oil prices could rise further. The UK economy has performed better than the MPC’s initial expectations since the conflict began, with GDP growing by 0.7% over the three months ending in May. There is currently little sign that the energy shock will trigger more persistent price pressures. CPI has been below expectations for three consecutive months, falling to 2.6% in June. Wage growth, one of the main sources of inflationary pressure, has slowed, and food price increases have also moderated. Economists say this will allow the MPC to hold interest rates at 3.75% at Thursday’s meeting while signaling that it stands ready to tighten policy if energy prices rise sharply again or if one-off price shocks begin to evolve into more persistent issues.