US EditionBank of England keeps rates on hold at 3.75% as Iran war shakes outlook
The committee said war-driven energy shocks could force higher borrowing costs and raise the risk of recession if prices stay elevated.
- On Thursday, the Monetary Policy Committee voted 8-1 to leave the benchmark rate at 3.75%, as the conflict in Iran creates significant economic uncertainty for the central bank's outlook.
- Because energy prices remain volatile due to the conflict in Iran, the BOE scrapped its central inflation projection and instead outlined three potential scenarios based on different energy price paths.
- Chief Economist Huw Pill dissented, while Deputy Governors Dave Ramsden and Clare Lombardelli, Megan Greene, and Catherine Mann all signaled that financial conditions may need tightening soon.
- Governor Andrew Bailey said holding rates was a "reasonable place" to be given softness in the UK economy, though the panel "stands ready to act" if inflation risks increase.
- The BOE warned that prospects for global energy prices are "highly uncertain," with the most downbeat scenario showing inflation hitting 6.2% in 2027, above the 2% target.
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77 Articles
Bank of England holds interest rates but warns of future shocks from Iran war
The Bank of England has held interest rates at 3.75 per cent, amid uncertainty over the Iran war. The move came with stark warnings of what could happen if the energy shock from the Iran war does not ease. In one scenario, sustained high oil prices could lead to a near doubling in the rate of inflation and potential interest rate rises up to five and a half per cent.
Bank of England Holds Rates at 3.75 Percent
The Bank of England (BoE) on April 30 held its key interest rate steady at 3.75 percent, after weighing rising inflation against signs of a weakening economy and warning of the global energy market volatility. The bank said it assessed how rising energy prices in the aftermath of the conflict in the Middle East may affect UK inflation and economic activity. “War in the Middle East is disrupting the transportation and supply of energy, raising it…
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Rother Radio - Rotherham & Sheffield's Best Variety of Hits!Bank signals interest rates could rise as Iran war to push up cost of living
The new outlook comes as interest rates were held at 3.75% on Thursday.
Interest rates held at 3.75% as Bank of England hints at future rises over Iran war
The Bank of England voted to hold interest rates at 3.75% as it monitors the knock-on effects of the Middle East conflict. Source link : https://www.bbc.com/news/articles/cg7p89mp2rjo?at_medium=RSS&at_campaign=rss Author : Publish date : 2026-04-30 15:02:00 Copyright for syndicated content belongs to the linked Source.
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