Bank of America: Investors are increasing their bets on the Bank of England to raise interest rates because the UK is sensitive to oil prices

Golden Finance reported on July 10 that, after a new round of tensions between the US and Iran pushed oil prices higher, investors this week increased their expectations that the Bank of England will raise rates in 2026. In a report, Bank of America strategists said the UK remains highly sensitive to global oil price shocks, which has led investors to reprice interest-rate expectations. Data from the London Stock Exchange Group shows that the market currently reflects expectations of a total 27 basis points of rate hikes by the Bank of England in 2026, up from the 20 basis points expected a week earlier. (Jin10)
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