Federal Reserve and Bank of England Likely to Hold Rates in July Policy Meetings

The U.S. Federal Reserve's Federal Open Market Committee is meeting on July 28‑29 to decide whether to adjust the federal funds rate, which currently sits between 3.5% and 3.75%. Market forecasts show a 38% chance of a quarter‑point hike, but many analysts expect the Fed to keep rates steady as inflation eased to 3.5% in June.

In the United Kingdom, the Bank of England is scheduled to meet on Thursday, July 26, with most polls indicating it will leave its Bank Rate at 3.75%. British inflation fell to 2.6% in June, helped by a temporary dip in fuel prices after a de‑escalation of tensions with Iran. Nonetheless, renewed oil price volatility has kept inflationary concerns alive, reinforcing a cautious stance.

Investors are watching both meetings closely because the outcomes will influence the U.S. dollar, global equity markets, and commodity prices.