The Bank of England has kept interest rates at 3.75% following its latest Monetary Policy Committee meeting, leaving borrowing costs unchanged.
The decision comes as policymakers weigh inflation against a more uncertain economic outlook, with recent geopolitical tensions, including the war in Iran, contributing to market volatility and higher oil prices. It was a unanimous decision today to “wait and see” how long and how severe the conflict will be.
Prior to the conflict, some analysts had expected a rate cut, particularly after inflation fell to 3% in January and the Bank rate reached its lowest level since February 2023. However, expectations have shifted, with economists now less certain about the timing of any cuts and some raising the possibility of further increases if economic pressures persist.
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