US EditionBank of England Says Rates Could Rise as Iran War Fuels Inflation
The Monetary Policy Committee is expected to keep borrowing costs unchanged as inflation stays at 3.3% and war-related uncertainty clouds forecasts.
- The Bank of England is expected to maintain interest rates at 3.75% on Thursday as policymakers assess the economic impact of the Iran war and Tehran's closure of the Strait of Hormuz.
- Treasury chief Rachel Reeves said the Middle East crisis is "not our war, but it is pushing up bills for families and businesses," as UK inflation climbed to a three-month high of 3.3% in March.
- The nine-member Monetary Policy Committee will publish quarterly economic projections today, with experts suggesting the panel may hint at future rate increases if the conflict pressures inflation further.
- Upheaval from the Iran war pushed average two-year fixed mortgage rates to a peak of 5.90% before easing slightly to 5.81%, according to financial information service Moneyfacts.
- Policymakers remain alert to any action from Britain's Labour government to mitigate inflation impacts, though analysts warn fixed-rate mortgage increases cannot be ruled out in the coming weeks.
23 Articles
23 Articles
Bank of England set to join Fed in keeping rates on hold as it weighs impact of Iran war
The Bank of England is expected to announce it's keeping interest rates on hold as policymakers assess the economic impact of the Iran war and Tehran’s effective closure of the Strait of Hormuz, through which a fifth of the world’s…
Bank of England expected to hold interest rates as it weighs the impact of Iran war
The Bank of England is expected to announce it's keeping interest rates on hold as policymakers assess the economic impact of the Iran war and Tehran’s effective closure of the Strait of Hormuz, through which a fifth of the world’s crude passes in peac...
Associated Press News
Bank of England keeps interest rate on hold at 3.75% as it weighs impact of Iran war on UK economy
The Bank of England is keeping its main interest rate on hold at 3.75% as policymakers assess the economic impact of the Iran war and Tehran’s effective closure of the Strait of Hormuz, through which a fifth of the world’s crude passes.
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