Bank of America: Investors Increase Bets on Bank of England Rate Hikes Due to UK’s Sensitivity to Oil Prices

Jinse Finance reported on July 10 that after a new round of tensions between the US and Iran led to a rise in oil prices, investors have increased their expectations for the Bank of England to raise interest rates in 2026 this week. Bank of America strategists stated in a report that the UK remains highly sensitive to global oil price shocks, prompting investors to reprice interest rate expectations. Data from the London Stock Exchange Group shows that the market now reflects expectations for a total rate hike of 27 basis points by the Bank of England this year, up from 20 basis points a week ago. (Golden Ten Data)