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Only the Middle East crisis is preventing a drop in UK interest rates

Bank’s wariness about inflationary pressures from the conflict lie behind decision to hold steady at 3.75%

There is a threat of high inflation coming to the UK, but only from the conflict in the Middle East which could keep oil prices high for much longer than was expected when Donald Trump first began attacking Iran.

It is the war that makes the difference between a benign outlook for inflation and one that puts it back on a rising trajectory, top UK central bankers believe.

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Jul 30, 2026 Interest rates Bank of England Economics
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Only the Middle East crisis is preventing a drop in UK interest rates Interest rates Jul 30, 2026 Only the Middle East crisis is preventing a drop in UK interest rates Bank’s wariness about inflationary pressures from the conflict lie behind decision to hold steady at 3.75%Business live – latest updatesThere is a threat of high inflation coming to the UK, but only from the conflict...
Only the Middle East crisis is preventing a drop in UK interest rates

Bank’s wariness about inflationary pressures from the conflict lie behind decision to hold steady at 3.75%Business live – latest updatesThere is a threat of high inflation coming to the UK, but only from the conflict...

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