Bank of England Holds Steady Amid Middle Eastern Tensions
The Bank of England maintained its interest rate at 4.25% due to growing fears of a conflict between Israel and Iran affecting oil prices. While inflation at 3.4% remains above the bank's target, the Middle Eastern conflict may further impact the economy. Uncertainty persists with global tariffs also in focus.
- Country:
- United Kingdom
The Bank of England has decided to maintain its main interest rate at 4.25% as tensions rise in the Middle East. Concerns are mounting that the ongoing conflict between Israel and Iran could further impact global stability and elevate oil prices.
The decision by the nine-member Monetary Policy Committee was largely expected. While six members opted to keep the rate steady, three advocated for a quarter-point reduction. Current UK inflation stands at 3.4%, above the bank's 2% target rate.
Bank governor Andrew Bailey highlighted the unpredictability of the global landscape, with potential tariffs from the US adding to concerns. Despite some global economic uncertainties, the UK may avoid extensive tariffs, but challenges remain.
(With inputs from agencies.)
ALSO READ
Elevated economic and trade policy uncertainties are testing resilience of global economy and financial system: RBI Report.
Out of India's 6.7% share in global economy's incremental growth, SBI alone accounts for 1.1%: Report
Countries which have major contributions to today's global economy not given place at decision making table: PM Modi at BRICS.
TIMELINE-How Trump's trade war is upending the global economy
Google News