Bank of England’s Bailey says no rush to raise interest rates amid Iran war uncertainty
The Bank of England's governor, Andrew Bailey, stated that there is no immediate need to raise interest rates due to the ongoing uncertainty from the Iran war and weak economic growth in the UK. He indicated that inflation above the 2% target can be tolerated temporarily to support the economy, but this stance may change if inflationary pressures become more permanent. Bailey emphasized the importance of monitoring the situation closely and adjusting policies as necessary.
- ▪The Bank of England is not rushing to raise interest rates amid the Iran war and weak UK growth.
- ▪Inflation above the 2% target is currently tolerable to support the economy.
- ▪Borrowing costs have risen for homeowners and businesses without a change in central bank rates.
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The Bank of England is covered in scaffolding during a renovation. Photograph: Amer Ghazzal/ShutterstockView image in fullscreenThe Bank of England is covered in scaffolding during a renovation. Photograph: Amer Ghazzal/ShutterstockBank of EnglandBank of England’s Bailey says no rush to raise interest rates amid Iran war uncertaintyInflation can be tolerated above 2% target for now ‘given context of softness in real economy’, governor says Business live – latest updates Phillip InmanFri 29 May 2026 08.49 EDTLast modified on Fri 29 May 2026 08.54 EDTSharePrefer the Guardian on GoogleThe Bank of England is in no rush to raise interest rates while the outcome of the Iran war remains uncertain and the UK’s growth rate stays weak, the governor, Andrew Bailey, said.In a signal that borrowing…
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