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18 resultsfor “Bank of England interest rate forecast”

Business

NatWest faces £140m hit from Iran war as UK growth slows and inflation rises

forecasts include a rise in the rate of unemployment in the UK to 5.5% this year. Last week the Office for National Statistics put the rate of unemployment at 4.9% in February but said

The Guardian WorldMay 1
Business

UK jobs market was in a fragile state – even before Iran war threatened recovery

Bank of England to tighten policy aggressively, although we do expect at least one rise in the coming months.” Others expect rates to remain on [hold at 3.75%](https://www.theguardian.com/business/2026/mar/19/bank-of-england-holds-interest-rates-iran-war-inflation) for an extended period

The Guardian WorldApr 21
Business

UK growth forecast upgraded by IMF but risks remain

Bank of England does not need to raise interest rates this year in response. "Holding rates for the remainder of the year should be sufficient to bring inflation back to target

BBC NewsMay 18
Business

Interest rates expected to be held as uncertainty over Iran war continues

Interest rates are expected to be held at 3.75% by the Bank of England, with uncertainty dominating the UK and global economies. Analysts are widely predicting the benchmark rate will be left unchanged owing

BBC NewsApr 29
Business

Bank bosses called to meeting with Reeves over impact of Iran war on UK economy

forecasts about rising inflation and mortgage costs. More than 1 million UK households [could see the cost of servicing loans on their homes increase](https://www.theguardian.com/money/2026/apr/01/iran-war-higher-mortgage-payments-uk-households-bank-of-england), the Bank of England has predicted. In that

The Guardian WorldApr 19
Business

Quarter of a million people could lose job by middle of 2027 as UK ‘flirts with recession’, analysis says

forecast for 2026, down from the 1.3% the IMF predicted in January. The Item Club expected inflation to rise to almost 4% in the second half of 2026 – nearly double the Bank of England

The Guardian WorldApr 20
Business

Faisal Islam: Bank of England is trying to manage expectations

interest rate rise is going to force an oil tanker through the Strait of Hormuz, or clear the "hazardous area" of mines. The Bank of England repeatedly made the point in its latest meeting

BBC NewsApr 30
Business

UK’s long-term borrowing costs hit highest level since 1998

interest rate – on 30-year UK government bonds (gilts) hit 5.76% at lunchtime on Tuesday, up 0.11 percentage points – exceeding the 27-year high reached last autumn. Yields have been rising across leading economies amid

The Guardian WorldMay 5
Business

What is happening to UK prices?

interest rates up and down to try to keep inflation on track. Six cuts since August 2024 had brought rates down to 3.75%, but the war is expected to delay any further falls

BBC NewsMay 20
Business

UK faces £35bn hit and risk of recession this year over impact of Iran war, thinktank warns

forecasts for 2026 by 0.5 percentage points, to 0.9%, and by 0.3 percentage points in 2027, to 1%. It also warned under an adverse scenario, involving the global oil price hitting $140 a barrel, that

The Guardian WorldApr 28
Business

Lloyds takes £151m hit from Iran war as it forecasts rise in UK unemployment

forecasts include a rise in the UK unemployment rate to 5.6% by the second half of the year. Last week the Office for National Statistics put the [rate of unemployment at 4.9% in February

The Guardian WorldApr 29
Business

UK unemployment shows surprise fall to 4.9% as pay growth drops to lowest in five years

England will examine Tuesday’s employment market data and the inflation figures before making their next interest rate decision on 30 April. Economists expect the Bank to keep the base rate on hold

The Guardian WorldApr 21
Business

UK house prices fall for first time this year amid rising mortgage rates

forecast that house prices will fall this year owing to rising mortgage rates. It said the impact of war in the Middle East had “fundamentally changed” its outlook for the UK property market, predicting that

The Guardian WorldJun 1
Business

UK economy records surprise 0.3% growth in first month of the Iran war

forecast GDP would shrink by 0.2%. Over the first three months of 2026, GDP rose 0.6%, up sharply from growth of 0.1% in the final three months of last year. The ONS said that growth

The Guardian WorldMay 14
Business

Rural UK ‘particularly at risk’ of diesel shortages if Iran war continues

forecast is weaker, however, at 1.1%, instead of the 1.3% expected previously. Setting out in its latest economic outlook the particular risks to the UK from the conflict, which the OECD expects to crimp economic

The Guardian WorldJun 3
Business

UK service sector activity slumps in one of sharpest declines for a decade

forecast by economists and the lowest since April 2025. Andrew Wishart, an economist at the German bank Berenberg, said if the slump in the PMI were to continue, it would point to “GDP growth collapsing

The Guardian WorldMay 21
Politics

What people in power think the impact of the Iran war will be

forecasts for long-term security… a small bit of economic pain for a few weeks is worth taking off the incalculable tail risk." I asked him to clarify exactly what he meant and he pointed

BBC NewsApr 18
Politics

Reeves says ‘if economy ain’t broke, don’t fix it’ - as fight to keep her job goes on

forecasts for a 0.2% contraction – the chancellor said the figures showed she had the right economic plan, in a comment laced with subtext. Over the first three months of 2026, the economy grew

The Guardian WorldMay 14