UK rates on hold due to ‘highly unpredictable’ world
The Bank of the UK warns the “extremely unpredictable” geopolitical environment, as the lowest level of the two -year interest rate does not change its main interest rate by 4.25 percent.
With the concerns that led to the conflict between Israel and Iran, and the uncertainties of US President Donald Trump’s tariff agenda, wage determinants in the bank were expected to keep their borrowing costs while waiting for developments.
However, the news that three of the nine policy makers in the Monetary Policy Committee voted to reduce the rate of four percent of the rates, inflated their market expectations that they would be cut again in August.
The minutes of the meeting showed how policy makers pay attention to how the conflict in the Middle East will affect the sharply rising oil prices.
The judge view in the bank had started to start to start to start to start to start to start to start to start to start to start to start returning to 2026, especially in the coming months.
The increase in oil prices has the potential to balance it.
“Interest rates remain gradually down, although the interest rates are on waiting today,” Bank Governor Andrew Bailey said on Thursday. He said.
“The world is extremely unpredictable.”
Since the first quarter point rate dropped at the highest level of 5.25 percent last August, the Bank of the UK has played it steady and reduced interest rates every three months.
This means that the next decrease was in August.
Economists believe that they continue to be the most likely result, but warned that geopolitical events, such as the increase in the conflict in the Middle East, may cause a reassessment.
Inflation, during this time, despite the fact that the bank’s target ratio was more than two deductions.
The ratio determinants cannot do much about the existing inflation, so the policy determines on a longer -term horizon as it is more than two years.
US President Donald Trump’s uncertainty at the level of tariffs that will impose worldwide is clouds for the world prices.
Although England seems to be saved from a series of tariffs, the ground of the global economy remains very uncertain.
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