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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 costsThe Bank of England could be forced to tear up its economic forecasts and raise interest rates later this year if…

This article was originally published by The Guardian World and is republished here under license.

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.

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