BOE Rate-Rise Expectations Could Stay High Amid Inflation Pressures
Dow Jones
Jul 30
1158 GMT - Markets are expected to continue pricing in the possibility of the Bank of England interest rate rises later this year due to persistent inflation risk, Franklin Templeton Institute's Michael Browne says in a note. The BOE voted to keep rates on hold at 3.75% at Thursday's rate decision. High oil prices from the Middle East conflict add inflationary pressures as well as the impact of drought on food prices, Browne says. This factors are likely to cause investors to continue expecting rate rises from the BOE in 2026. Investors currently price in a total of 32 basis points of BOE rate rises in 2026, LSEG data show.
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