Oil price surge revives prospect of Bank of England rate rise this year

Oil prices have surged to $108 following fresh attacks in the Middle East, threatening a new inflation shock. This price increase has revived prospects of the Bank of England raising borrowing costs later this year. While investors expect the BoE to hold rates during this week's meeting, the current market volatility is prompting central bank rate setters to consider potential hikes to combat rising inflation driven by the spike in global oil costs.