BoE Still Far from Rate Hike Despite Energy Price Spike

The Bank of England is poised to keep its key interest rate on hold at its 30 July meeting, even as rising energy costs push inflation higher. Updated projections due alongside the decision are expected to show consumer price growth peaking near 3% later in 2023.

The current assessment suggests that the recent uptick in oil and natural gas prices has not been enough to shift the central bank’s stance. Officials would need to see a further, more pronounced spike in energy markets before they become comfortable with delivering a rate hike.