Bank of England could cut interest rates ‘if war ends’
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The Bank of England may cut interest rates this year if the war in Iran ends and the Strait of Hormuz opens up. Economist Kallum Pickering suggests that the Bank could make two interest rate cuts at the end of the year if a resolution is found for trading routes in the Middle East.
The Bank of England could cut interest rates this year. This is according to economist Kallum Pickering, who says the Bank may make two interest rate cuts at the end of the year if the war in Iran ends. The war has heightened the risk of fuel shortages across the world. Pickering's current assumption is that the Bank will cut rates if the Strait of Hormuz opens up. The Monetary Policy Committee will meet on 30 June to discuss interest rates. The Bank's governor, Andrew Bailey, has attempted to temper expectations of further interest rate hikes. The UK economy is vulnerable to a wage-price spiral due to higher inflation.
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