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Bank of England to Keep Rates on Hold While It Gauges Impact of Iran War
Policymakers will test downside cases for growth and inflation as markets see the Bank keeping borrowing costs at 3.75% on Thursday.
- On Thursday, the Monetary Policy Committee is widely predicted to keep the Bank Rate on hold at 3.75% as policymakers await further clarity on the Middle Eastern conflict.
- The ongoing conflict with Iran has disrupted shipping through the Strait of Hormuz, pushing up oil prices and forcing the Bank to reassess its economic forecasts for 2026 and 2027.
- With inflation at 3.3%, well above the 2% target, the central bank will model various energy price scenarios to determine potential second-round effects on the economy.
- Mortgage rates have recently dipped, offering respite to borrowers, but finance expert Rachel Springall of Moneyfacts warns that limited market stability leaves little scope for lenders to drop rates substantially further.
- While financial markets price in two quarter-point rate increases this year, senior economist Edward Allenby expects the Bank Rate to remain steady as policymakers prioritize caution amid economic downturn signals.
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Interest rate hold from Bank of England 'almost certain' - what does it mean for savings and mortgages?
Economists are predicting that Bank of England rate-setters will "almost certainly" keep the base rate unchanged at 3.75 per cent when the Monetary Policy Committee convenes on Thursday.This would represent a blow to borrowers, who are hoping for relief on mortgage and debt repayments, but could be a boon for savers looking for higher interest rates from accounts.The nine-member panel is expected to maintain its current stance despite the ongoin…
·London, United Kingdom
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Bank of England set to keep rates on hold this week
The Bank of England will keep interest rates on hold this week and try to look ahead to the damage building up for Britain's economy from the Iran war, while investors will be watching for any signs it is moving towards raising rates.
·Ireland
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Total News Sources13
Leaning Left1Leaning Right4Center3Last UpdatedBias Distribution50% Right
Bias Distribution
- 50% of the sources lean Right
50% Right
13%
C 37%
R 50%
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