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Source:
The Guardian
Economists warn rising oil may boost UK rates
Renewed conflict in the Middle East has driven oil prices above $100 a barrel, increasing concerns over inflation and prompting expectations that the Bank of England may consider raising interest rates in the future. While policymakers are expected to hold rates steady at 3.75% during their upcoming meeting, economists warn that sustained high oil prices could lead to rate hikes, potentially up to 4.75%, to address inflationary pressures. The conflict’s impact on energy costs raises economic uncertainties for the UK, with some experts suggesting a possible rate increase as early as September.
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