Oil surges to $108, threatening fresh inflation shock - will Bank of England now hike rates this year?
Fresh attacks in the Middle East have pushed oil prices higher this morning, raising the prospect of rate hikes as central bank rate setters prepare to meet this week.
Goldman Sachs has forecast that the Bank of England will raise interest rates to four percent by the end of the year, driven by concerns that inflation could surge beyond projections. This comes as the bank revised its inflation forecast for the beginning of 2027 upwards to 3.9 percent, reflecting heightened expectations of interest rate hikes to curb inflationary pressures stemming from the energy price shock caused by the Iran conflict.
Analysts are divided, with some believing the Bank may signal a tightening of monetary policy later this week, while others argue that the Bank's patience may be waning as growth resilience could increase policymakers' nervousness over higher inflation.
Written by urgent.news from City AM's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
This story
This is one outlet's version. Read the fullest account.
