Oil Prices not Low Enough to Derail ECB, BOE Rate Hike Prospects

0844 GMT - Energy prices would have to fall much further to derail prospects of interest-rate hikes by the European Central Bank and the Bank of England, Citi's Jamie Searle says in a note. "Only time will tell if the U.S. midterms do represent a turn for Middle East policy with implications for ECB/BOE hike prospects," the rates strategist says. The U.S.-Iran conflict has been the defining driver of global rates in 2026, he says. If the Democratic sweep in this week's U.S. midterm elections does mark a shift in policy, "this could be a pivotal moment in driving bullish retracement," he says. This would add to potentially bullish drivers for rates from an equity correction and less chance of further U.S. fiscal expansion, Searle says.