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Wed, 29 Apr 2026

Wed, 29 Apr 2026 Interest rates expected to be held as uncertainty over Iran war continues

Future base rate changes are hard to predict as analysts judge the economic impact of the Iran war.
The Bank of England is expected to keep interest rates steady at 3.75%, due to ongoing uncertainty caused by the conflict in the Middle East and its impact on the economy and cost of living. Analysts predict that the benchmark rate will not be changed, despite inflation remaining above the 2% target at 3.3%. The Bank's Monetary Policy Committee is taking a cautious approach, considering factors such as the potential long-term effects of the conflict and its ongoing assessment of the economic situation. The MPC's decision will have significant implications for borrowers and savers, with interest rates affecting mortgage deals and savings accounts. Despite some lenders cutting mortgage rates in recent days, fixed rate rises cannot be ruled out, according to brokers. Savers are also advised to monitor their accounts, as rising prices can erode the value of savings if interest rates remain low. The conflict has already had a significant impact on the economy, with energy-related industries such as oil and gas seeing a surge in demand for services like boiler installation. However, this trend may be short-lived if interest rates are raised to curb inflation.