Barclays: Rising Oil Prices May Prompt Bank of England Officials to Signal Rate Hikes

Jin10 Data, July 13 – Barclays analysts noted in a report that, given the rise in oil prices, members of the Bank of England's Monetary Policy Committee may signal a tendency toward rate hikes in the coming months. Previously, the U.S. targeted Iranian assets over the weekend, and Iran launched attacks on ships passing through the Strait of Hormuz. Analysts stated: "We believe the escalating tensions in the Middle East and this week's increase in oil prices will make the risk of heightened inflationary pressures a key focus for Monetary Policy Committee members." According to LSEG data, the market has fully priced in expectations for the Bank of England to raise rates by 25 basis points in 2026, with a 28% probability of another 25 basis point hike before the end of the year.