What could happen next with UK interest rates?
The Bank of England has held interest rates at 3.75%, where they have remained since February 2023, as rising inflation linked to global tensions involving Iran complicates the outlook for future rate moves. While earlier expectations pointed to further rate cuts in 2026, higher fuel costs and inflation have raised the possibility of rate increases to control price growth. The Bank is closely monitoring the economic impact of geopolitical events, with its next decision due in June.
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Will UK interest rates go up?2 hours agoShareSaveAdd as preferred on GoogleKevin PeacheyCost of living correspondentGetty ImagesThe Bank of England has held interest rates at 3.75%, keeping them at the lowest level since February 2023.Rates fell from 4% in December, and further cuts had been expected in 2026, but the economic impact of the war in Iran means the next interest rate move could be up. Interest rates affect mortgage, credit card and savings rates for millions of people.What are interest rates and why do they change?An interest rate tells you how much it costs to borrow money, or the reward for saving it.The Bank of England's base rate is what it charges other banks and building societies to borrow money, which influences what they charge their own customers for mortgages as…
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