Interest rates have been held at 3.75% for all of 2026 so far as the Iran war has caused an economic shock for the UK.
Before the war broke out, the Bank of England’s Monetary Policy Committee (MPC), which meets every six weeks to set interest rates, had been poised to cut rates this year.
However, as it became increasingly clear the Iran war would lead to increased inflation, the MPC kept interest rates on ice.
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The MPC’s latest interest rates decision will be announced on 5 November, with some economists expecting the committee to raise interest rates to help stave off inflation. Meanwhile, others believe the committee will keep rates at 3.75%.
What do you think the MPC should do? Tell us in the poll below.
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