The Bank of England is widely expected to hold interest rates at 3.75% at today’s policy announcement, as policymakers take a cautious stance amid escalating tensions in the Middle East.
Economists anticipate that the Bank’s nine-member Monetary Policy Committee will leave borrowing costs unchanged, balancing persistent inflationary pressures with heightened geopolitical uncertainty.
Alongside the decision, the MPC will release its latest monetary policy report and updated economic forecasts—the first comprehensive outlook since the US-Israeli and Iranian conflict intensified in late February.
Recent data suggests the conflict is already feeding into inflation. Figures from the Office for National Statistics showed consumer price inflation rose to 3.3% in March, up from 3.0% in February, driven largely by higher fuel costs.
The combination of rising energy prices and global uncertainty is likely to reinforce the Bank’s cautious approach, with policymakers seeking greater clarity before adjusting rates.
