BOE Likely to Keep Rates on Hold but Will Watch Middle East
Dow Jones
Jul 22
0710 GMT - The Bank of England is expected to leave interest rates unchanged at 3.75% as it awaits clear signs of the impact of the Middle East conflict, Quilter Cheviot's Richard Carter says in a note. The latest U.K. inflation data shows annual headline inflation moderated to 2.6% in June, from 2.8% in May as oil prices briefly dropped in June in the wake of the U.S.-Iran ceasefire. "With events in the Middle East still threatening to erupt back into a full-scale conflict as we saw earlier this year, this will continue to put pressure on the inflation rate." Markets price in a total of 40 basis points of BOE interest rate rises in 2026, LSEG data show. (miriam.mukuru@wsj.com)
(END) Dow Jones Newswires
July 22, 2026 03:10 ET (07:10 GMT)
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