US EditionBank of England holds interest rates at 3.75% as Iran war prompts inflation fears
The Bank of England's unanimous decision to hold rates at 3.75% reflects caution amid rising inflation risks from the Iran war, with inflation forecast to reach 3.5% this year.
- On Thursday, the Bank of England held interest rates at 3.75% in a unanimous Monetary Policy Committee vote amid risks from the Iran war that started Feb. 28.
- Before the conflict, markets had expected imminent rate cuts, but the Iran war starting Feb. 28 triggered oil and gas price surges, upending forecasts.
- Recent policy history reveals the MPC held rates at 3.75% while warning CPI inflation will be higher in the near term, and Andrew Bailey said 'all going well,' there should be scope for some further cuts this year.
- UK borrowers face higher mortgage costs as UK government bond yields spike, households endure rising pump prices and bills, while the U.S. Federal Reserve held rates on Wednesday amid uncertainty.
- City economists expect the base rate to end the year at 3% if inflation stays near present levels, while Goldman Sachs forecasts two or three cuts but hesitates amid high energy prices.
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56 Articles
The Time of Monsters was an inaccurate translation from Italian of Antonio Gramsci's reflections that have been widely circulated in recent months. Morbid times is probably a better translation for his writings and the world situation after the war that began in the Middle East last weekend. The specter of inflation has sometimes been depicted as a monster, especially in caricatures of a bygone era. A specter or monster that even ate children...
The Bank of England, as expected, left its key interest rate unchanged. It remains at 3.75 percent, it was announced in London after today's meeting. The US and Japanese central banks decided the same on Wednesday and today, respectively, and no changes in monetary policy are expected from the European Central Bank.
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