Bank of England Holds Interest Rates Amid Iran War Escalation Warning

The Bank of England opted to hold interest rates at their current level following its latest policy meeting, even as officials warned they stand ready to tighten monetary conditions if the Iran-US conflict intensifies further.

Policymakers revised their economic growth forecasts upward, pointing to signs of resilience in the British economy. At the same time, they cautioned that a significant escalation in Middle East hostilities could push energy prices higher and feed into domestic inflation, potentially forcing the bank to act.

The decision follows a new wave of US military strikes against Iran on Thursday in response to an attempted attack on American troops. The Bank of England is taking a watchful stance, prepared to move but holding steady as the geopolitical situation continues to develop.