XTB analyst Kathleen Brooks says the Bank of England is likely to hold rates at
3.75% today but may signal a November hike. Brooks argues a move this week would
be futile because inflation is being driven by global oil prices beyond the
Bank's control. Governor Bailey has warned continued oil gains and
drought-driven food costs could push inflation above 4% this year. Brooks said a
US-Iran peace deal would be the only near-term development likely to avert UK
rate increases in the coming months.
