BOE Hikes More Likely as Iran War Continues

Bank of England Deputy Governor Clare Lombardelli has warned that interest-rate hikes are becoming more likely due to the ongoing Middle East conflict. She will make this statement on Thursday, citing that firms have so far absorbed higher energy prices but their ability to do so is limited.

Lombardelli believes that a prolonged shock raises the risk of inflationary pressures spreading across the economy, leading to increased pay demands and prices.