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Bank Ready to Raise Interest Rates if Iran War Price 'Shock' Persists
The Bank of England cited Middle East conflict-driven oil price rises as a key factor for holding rates, with 60% of UK savings accounts below the 3.75% base rate.
- On Thursday, the Bank of England is expected to maintain its base rate at 3.75%, delaying anticipated cuts following US-Israeli strikes on Iran less than three weeks ago that disrupted global oil markets.
- US-Israeli strikes on Iran triggered volatility in oil and gas markets, with crude prices surging and threatening to push inflation above the Bank's 2% target, upending economic forecasts.
- A Reuters poll of economists points to a 7-2 vote by the MPC to keep rates on hold at 3.75% when the decision is announced at noon GMT. Goldman Sachs economist James Moberly cited restrictive policy and elevated unemployment as key concerns.
- Average two-year fixed mortgage rates jumped to 5.30%, the highest since last February. Tamsin Powell, consumer finance commentator at Creditspring, said this is "particularly challenging for lower income households" facing stretched budgets.
- The MPC could cut rates as soon as June if disruption to shipping in the Strait of Hormuz is short-lived, according to Berenberg Bank economist Andrew Wishart. This hinges on inflation pressures subsiding.
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46 Articles
46 Articles
ABC FOX Montana+13 Reposted by 13 other sources
Bank of England holds interest rate amid Middle East war
The Bank of England left its benchmark interest rate at 3.75 percent on Thursday as it monitors the inflation outlook, pressured by rising energy prices from the Middle East war.
·Missoula, United States
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In times of the Iran war, the Bank of England is taking a further interest break – despite falling inflation. The background is the concern about a new boost in inflation.
·Düsseldorf, Germany
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Total News Sources46
Leaning Left7Leaning Right8Center11Last UpdatedBias Distribution42% Center
Bias Distribution
- 42% of the sources are Center
42% Center
L 27%
C 42%
R 31%
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