BoE Watch: BoE to hold rates as energy prices keep rate hikes in play

The Bank of England will almost certainly keep interest rates at 3.75% at its policy meeting on Thursday 30th July and the latest rebound in energy prices will ensure that it continues to stress that it is ready to raise interest rates if necessary. Assuming that energy prices don’t rise much further, we still think that rate hikes will be avoided and that the Bank will cut rates next year. But the rebound in energy prices has knocked some of our confidence in that forecast.

We’ll be discussing the outlook for BoE, Fed and ECB policy in a 20-minute online briefing at 3pm on Thursday 30th July. (Register here.)