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The Bank of England likely holds rates at 3.75% amid rising energy prices from Middle East tensions, delaying inflation recovery and disrupting the mortgage market.
The Bank of England is expected to keep its interest rate at 3.75% due to rising energy prices from Middle East conflict, which threaten to push inflation higher and delay earlier forecasts of inflation reaching 2% by April.
The Office for Budget Responsibility warned inflation could rise by up to one percentage point if energy costs remain high.
Economists say rate cuts are now unlikely in March and possibly April, with any future reductions dependent on energy price stability.
The uncertainty has disrupted the UK mortgage market, with over 530 deals removed—about 7.5%—and lenders raising rates amid rising swap rates, marking one of the most turbulent periods since the 2022 mini-budget crisis.
Es probable que el Banco de Inglaterra mantenga las tasas al 3,75% en medio del aumento de los precios de la energía debido a las tensiones en Oriente Medio, retrasando la recuperación de la inflación y perturbando el mercado hipotecario.