Bank of England holds rates but warns Middle East conflict could force hikes

The Bank of England held interest rates steady at 3.75% for a sixth consecutive meeting today, but Governor Andrew Bailey delivered a stark warning: if the Iran war persists, rates will likely rise. The Monetary Policy Committee voted 6-3 to hold, with three hawks pushing for an immediate increase citing AI-driven inflation pressures.

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The decision comes as Middle East conflict has pushed oil back above $100 a barrel, driving UK inflation to 3.1% in...