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Rising oil prices could force up UK interest rates, say economists

Bank of England expected to keep rates on hold on Thursday but renewed Iran conflict casts shadow over energy costs

The Bank of England could be forced to tear up its economic forecasts and raise interest rates later this year if oil prices return to above $100 a barrel, according to City economists.

Before a meeting of Bank officials on Thursday, economists said that while an interest rate hike would probably be avoided this week there could be some in the future because of conflict in the Middle East.

Jul 26, 2026 Interest rates Bank of England Inflation

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Interest rates Jul 26, 2026 Rising oil prices could force up UK interest rates, say economists Bank of England expected to keep rates on hold on Thursday but renewed Iran conflict casts shadow over energy costsThe Bank of England could be forced to tear up its economic forecasts and raise interest rates later t...

Rising oil prices could force up UK interest rates, say economists

Bank of England expected to keep rates on hold on Thursday but renewed Iran conflict casts shadow over energy costsThe Bank of England could be forced to tear up its economic forecasts and raise interest rates later t...

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Rising oil prices could force up UK interest rates, say economists

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