“Keeping interest rates on hold is a predictably pragmatic response to the conflicting realities of softer-than-expected inflation on the one hand and renewed US-Iran hostilities threatening a fresh wave of price rises on the other.
“The tighter vote split in favour of this outcome confirms a further hawkish shift within the committee with inflation worries outweighing concerns over the economy, keeping a September rate rise on the table.
"Interest rates remain on a knife edge. Policy could stay unchanged for the rest of the year, with rate-setters relying on tough talk rather than higher rates to contain inflation. But the longer the Iran conflict persists, the greater the risk that the committee's patience finally snaps.
"Rate-setters may also want to assess the inflationary impact of any upcoming policy announcements from the new Prime Minister before deciding on the next move on interest rates, particularly amid ongoing financial market volatility."
ENDS
Contact ICAEW media office:
About ICAEW
Chartered accountants are talented, ethical and committed professionals. ICAEW represents more than 211,600 members and students around the world. 81 of the top 100 global brands employ ICAEW Chartered Accountants.* 82% of FTSE 100 companies have an ICAEW member on their board.
Founded in 1880, ICAEW has a long history of serving the public interest and we continue to work with governments, regulators and business leaders globally. And, as a world-leading improvement regulator, we supervise and monitor more than 11,500 firms, holding them, and all ICAEW members and students, to the highest standards of professional competency and conduct.
We promote inclusivity, diversity and fairness and we give talented professionals the skills and values they need to build resilient businesses, economies and societies, while ensuring our planet’s resources are managed sustainably.
ICAEW is working towards becoming net zero, demonstrating our commitment to tackle climate change and supporting the UN Sustainable Development Goal 13.
ICAEW is a founding member of Chartered Accountants Worldwide (CAW), a global family that connects over 1.8m chartered accountants and students in more than 190 countries. Together, we support, develop and promote the role of chartered accountants as trusted business leaders, difference makers and advisers.
We believe that chartered accountancy can be a force for positive change. By sharing our insight, expertise and understanding we can help to create sustainable economies and a better future for all.
* includes parent companies. Source: ICAEW member data March 2026, Interbrand, Best Global Brands 2025.
Further information
latest press releases
Contact us
Media relations
Our Media Relations team can be contacted for comment, opinion and information on issues affecting the accountancy profession, business and the wider economy.
Find out moreAbout ICAEW
Who we are
As a global professional body for chartered accountants, we ensure all our chartered accountants have the knowledge and values to help build local and global economies that are sustainable, accountable and fair.
Find out more