Bank of England expected to hold interest rates amid Iran conflict uncertainty. Economic disruption from US-Israeli strikes has upended previous expectations for a rate cut, as oil prices surge and inflation pressures mount. The Monetary Policy Committee will likely maintain the benchmark rate at 3.75%, a shift from earlier analyst predictions of a reduction following January's inflation drop to 3%. Rising crude prices threaten to push energy costs higher, potentially reversing progress toward the Bank's 2% inflation target. Mortgage rates have already responded to market uncertainty, with two-year fixed deals jumping to 5.32%, their highest level since February. Five-year mortgages now average 5.37%, marking the peak since August 2024.
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