BOE Expected to Hold Rates at 3.75% Amid Middle East Concerns, June Inflation at 2.6%

According to Jin10 and Quilter Cheviot analyst Richard Carter, the Bank of England is expected to maintain interest rates at 3.75% on July 22, while monitoring Middle East conflict developments. June inflation data showed a decline to 2.6% following a temporary oil price drop after U.S.-Iran ceasefire talks.

Carter noted that ongoing Middle East tensions pose continued inflation pressure risks. Market expectations suggest the BOE could deliver a cumulative 40 basis points of rate hikes throughout 2026.