Bank of England to hold rates as Iran war impacts growth

Policymakers are likely to maintain borrowing costs this Thursday while assessing inflationary risks. Markets anticipate potential rate hikes later this year.

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The central bank of the United Kingdom is expected to maintain current interest rates this week as policymakers evaluate the economic fallout from the ongoing conflict in Iran. While the Bank of England (BoE) held borrowing costs steady in March, investors are closely monitoring for signals of a potential hawkish shift later this year.

The Bank of England's headquarters situated in London, England, as seen in April 2025. REUTERS/Carlos Jasso
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