{"id":423923,"date":"2026-05-03T23:29:34","date_gmt":"2026-05-03T23:29:34","guid":{"rendered":"https:\/\/www.newsbeep.com\/il\/423923\/"},"modified":"2026-05-03T23:29:34","modified_gmt":"2026-05-03T23:29:34","slug":"interest-rates-held-at-3-75-as-bank-of-england-hints-of-future-rises-over-iran-war","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/il\/423923\/","title":{"rendered":"Interest rates held at 3.75% as Bank of England hints of future rises over Iran war"},"content":{"rendered":"

Bank outlines three energy price scenarios, reflecting Iran war uncertaintypublished at 12:13 BST 30 April<\/p>\n

12:13 BST 30 April<\/p>\n

\"\"Faisal Islam
Economics editor, reporting from the Bank<\/p>\n

The Bank reflected the uncertainty over the war in the Middle East by outlining three scenarios for energy prices. <\/p>\n

Its experts seem to endorse a modest rate rise or two even in a more benign scenario, with energy prices moderating from here. <\/p>\n

The Bank\u2019s chief economist Huw Pill voted for a rise this month, alone. Other members said the Bank should wait to see the extent of the inflationary shock.<\/p>\n

In an adverse scenario with oil above $120 a barrel for the rest of the year and much higher natural gas prices, as many as six rate rises to 5.5% are hinted at, by the end of the year, to try to manage inflation down from a forecast 6%. The economy would be much weaker in such a scenario and unemployment higher.<\/p>\n

The oil price was already around this range this morning<\/a>, after President Trump indicated the US blockade of Iranian ships could last months longer.<\/p>\n

It is the relatively modest reaction of gas prices, for example compared with the Ukraine crisis two years ago, that has helped the Bank hold off rate rises. <\/p>\n

It also said that the pass through of inflation to wages – which can become a reinforcing upward spiral – might be limited by the fact that most pay deals for the year were concluded before the start of this energy shock<\/p>\n","protected":false},"excerpt":{"rendered":"Bank outlines three energy price scenarios, reflecting Iran war uncertaintypublished at 12:13 BST 30 April 12:13 BST 30…\n","protected":false},"author":2,"featured_media":423924,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11],"tags":[114,184,85,46],"class_list":["post-423923","post","type-post","status-publish","format-standard","has-post-thumbnail","category-economy","tag-business","tag-economy","tag-il","tag-israel"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts\/423923","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/comments?post=423923"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts\/423923\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/media\/423924"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/media?parent=423923"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/categories?post=423923"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/tags?post=423923"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}