Bank of England makes interest rate decision as inflation warning issued

• The Bank of England has held interest rates at 3.75 per cent, aiming to balance rising inflation pressures against a weak economic performance.
• This decision is influenced by the ongoing Iran war, which is pushing up oil prices and is forecast to increase energy and food costs throughout 2026.
• Despite earlier expectations for further rate cuts this year, the conflict has led some experts to predict potential rate increases to counter future inflation.
• While some mortgage lenders have recently lowered rates, a wide selection of cheap mortgages is not anticipated, as markets still price in possible future rate hikes.
• Savers can benefit from competitive rates exceeding 4 per cent, though households are increasingly struggling with everyday expenses like energy bills and credit card debt.

IN FULL

UK interest rates held as Bank of England warns of rising inflation concerns