“By keeping interest rates on hold, policymakers have chosen patience over panic, balancing the inflationary fallout from the Iran war-induced energy shock against little evidence that it is fuelling more persistent, economy-wide price pressures.
“While the vote split was unchanged, the tone of the meeting minutes points to a hardening of hawkish sentiment within the committee amid mounting inflation concerns, keeping the door wide open to a November rate rise.
"Interest rates are at a critical cliff-edge moment. While policy could still remain on hold this year, persistent US-Iran hostilities mean the risk of a rate hike has shifted from a possibility to a probability.
“Rate-setters will likely keep a close eye on next month’s Budget and the inflationary impact of any policy announcements before deciding their next move on interest rates, particularly given continued bond market volatility.”
ENDS
Notes to editors:
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* includes parent companies. Source: ICAEW member data March 2026, Interbrand, Best Global Brands 2025.
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