Report: Inflation risks still exist in the UK, but the Bank of England is unlikely to raise interest rates.

Oliver Faizallah of Charles Stanley stated in a report that due to ongoing conflicts in the Middle East and limited energy supply, the UK is facing inflation risks. Faizallah added that despite the threat of high inflation, the Bank of England is unlikely to raise interest rates due to weak economic growth. Charles Stanley predicts that the Bank of England will keep interest rates unchanged at 3.75% in the coming months. Data from the London Stock Exchange Group shows that investors have fully priced in expectations of two interest rate hikes by the Bank of England in 2026.