Stories

Wed, 15 Apr 2026

Wed, 15 Apr 2026 Bank boss tells BBC he won't rush interest rate rises

Bank of England governor says the Iran war energy shock makes the next rate decision "very very difficult".

* Bank of England governor Andrew Bailey says UK central bank won't rush to raise interest rates despite "very big energy shock"
* Higher oil and gas prices will feed into inflation, but other factors make decision on rates "very difficult"
* IMF warns against hiking borrowing costs in wake of Middle East conflict
* Bailey takes IMF's "serious advice" into account ahead of Bank's next meeting on 30 April
* UK economy is expected to be hardest hit by global economic slowdown due to conflict
* Higher energy prices could boost inflation and slow growth, making interest rate decision harder
* Bailey says it's too early to form strong judgments on impact of conflict on UK economy and inflation
* UK's "strong dependency on gas" means significant impact from conflict, but duration is key determinant
* IMF managing director Kristalina Georgieva raises concerns over supply chain disruptions beyond oil and gas
* Bailey says there is some resilience in the system, but it could run out if conflict persists
* He advises pursuing credible policies that deliver stability over time, including central bank policy and fiscal policy
* UK chancellor Rachel Reeves criticizes war on Iran, pointing to rising prices and impact on growth
* US Treasury Secretary Scott Bessent says small bit of economic pain is worthwhile for long-term international security