The Bank of England (BoE) has maintained its main interest rate at 4.5%, a two-year low. This decision reflects the BoE's cautious approach amid escalating tensions in the Middle East.
The Monetary Policy Committee (MPC) cited concerns that the conflict between Israel and Iran could drive up oil prices. This could potentially impact UK inflation, which currently stands at 3.4%, exceeding the 2% target.
The MPC is closely monitoring global events and their potential impact on domestic economic conditions. The committee will continue to assess developments and adjust monetary policy as needed.