Bank of England to keep interest rates unchanged amid rising oil prices — Bloomberg

According to Bloomberg, the Bank of England will keep interest rates at 4.25% on Thursday. The regulator is likely to ease monetary conditions at every other meeting, as policymakers try to strike a balance between elevated inflation, slowing UK economic growth, and rising oil prices.

In May, the Monetary Policy Committee cut borrowing costs by a quarter-point. Since then, the UK Consumer Price Index has risen to its highest level in over a year.

Analysts surveyed by Bloomberg estimate a 75% chance of the Bank of England easing monetary policy in August, followed by two additional rate cuts by summer 2026. This would leave interest rates at around 3.5%.

According to the news agency, the country's economy shrank the most in 18 months in April, while exports to the US also saw a record decline.

Meanwhile, UK GDP showed solid growth of 0.7% in the first quarter. At the time, exporters ramped up production to get ahead of impending trade tariffs by the American administration.