Bank of England Holds Steady Amid Middle Eastern Tensions

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.)