- The Bank of England has held interest rates at 3.75 per cent, aiming to balance rising inflation pressures against a weak economic performance.
- This decision is influenced by the ongoing Iran war, which is pushing up oil prices and is forecast to increase energy and food costs throughout 2026.
- Despite earlier expectations for further rate cuts this year, the conflict has led some experts to predict potential rate increases to counter future inflation.
- While some mortgage lenders have recently lowered rates, a wide selection of cheap mortgages is not anticipated, as markets still price in possible future rate hikes.
- Savers can benefit from competitive rates exceeding 4 per cent, though households are increasingly struggling with everyday expenses like energy bills and credit card debt.
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