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

The Guardian Business Thursday 30 July 2026, 12:44 UTC By Phillip Inman 1 min read

Key Points

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 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...

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

Business live – latest updates

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.

Middle East (LOCATION) UK (LOCATION) Bank (ORG) the Middle East (LOCATION) Donald Trump (PERSON) Iran (LOCATION)

Originally published by The Guardian Business Read original →

LONDON — U.S. President Donald Trump’s shadow is set to loom over the British economy as the Bank of England on Thursday warned fresh conflict in Iran could send prices soaring. New U.K. Prime Minister Andy Burnham took office last week with a flurry of cost-of-living announcements — but it’s the U.S. president’s policies that risk having the biggest potential knock-on to U.K. inflation, according to the central bank. The Bank’s Monetary Policy Committee decided Thursday to keep...

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

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