Bank of England holds rates as gilt prices rally
The Bank of England kept interest rates steady while outlining potential economic scenarios from the Iran war. Gilt yields fell as markets adjusted expectations.
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The Bank of England (BoE) kept interest rates unchanged on April 30, holding borrowing costs steady as it assesses the economic impact of conflict in Iran. This decision follows a hawkish shift in previous meetings, while two-year gilt yields fell 10 basis points to 4.485% following the announcement. Investors are recalibrating expectations for 2026, with money markets now pricing in two rate hikes instead of three.
