From Yahoo Finance: 2025-06-19 05:55:00

The Bank of England kept its main interest rate at 4.25% due to geopolitical uncertainties and concerns over the conflict between Israel and Iran. Three of nine policymakers voted to cut rates, raising expectations of a future cut in August.

Policymakers expressed worry over rising oil prices due to Middle East conflicts impacting inflation, currently at 3.4%. Bank Governor Andrew Bailey stated that interest rates will gradually decrease, with the next reduction expected in August.

Despite inflation above the 2% target, the Bank of England has reduced rates every three months since August. Economists warn that geopolitical events, such as Middle East conflict escalation, may prompt a reassessment of rate cuts.

Uncertainty over U.S. President Donald Trump’s tariff agenda clouds global economic outlook. While the UK may be spared tariffs, global economic uncertainty remains. The US Federal Reserve kept its key rate unchanged, defying Trump’s calls for rate cuts.

Read more: Bank of England says world is ‘highly unpredictable’ as it keeps interest rate at 2-year low