{
  "id": 8024665,
  "title": "Bank of England holds rate, warns of hike if Iran war persists",
  "url": "https://urgent.news/2026/09/17/bank-of-england-holds-rate-warns-of-hike-if-iran-war-persists",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-09-17T12:08:55.000Z",
  "source": {
    "name": "Free Malaysia Today",
    "slug": "free-malaysia-today",
    "url": "https://www.freemalaysiatoday.com/category/business/2026/09/17/bank-of-england-holds-rate-warns-of-hike-if-iran-war-persists"
  },
  "original_language": "en",
  "account": "On Thursday, the Bank of England maintained its benchmark interest rate at 3.75%, but cautioned that a potential rate hike may be required due to rising energy costs from the ongoing war in the Middle East. This decision followed the Federal Reserve's recent decision to raise US interest rates for the first time since 2023 to combat surging inflation.\n\nBank of England Governor Andrew Bailey noted that while higher energy costs have had a limited impact on price and wage setting in the UK so far, the longer the volatility persists, the more significant the impact on inflation could become, potentially necessitating a rate increase. The surge in energy prices due to the conflict has prompted central banks worldwide to adopt a more hawkish stance on monetary policy.\n\nThe Bank of Japan is expected to raise borrowing costs on Friday, while the European Central Bank recently increased rates for the second time this year. At the Bank of England's recent meeting, three members voted to increase the UK rate by 0.25 percentage points to 4%, while Bailey, joined by the remaining five members, called for no change, marking the sixth consecutive time he had voted against a rate hike.\n\nUK inflation reached 3.1% in August, well above the central bank's 2% target. The Bank of England anticipates price pressures to intensify, projecting inflation could reach 4% by the first quarter of 2027. If the Middle East conflict continues for an extended period and the risk of second-round effects increases, the BoE expects policy to tighten in response. Concerns about inflation have driven global government bond yields to multi-decade highs in recent weeks. UK Prime Minister Andy Burnham stated Wednesday that he is prepared to make difficult economic decisions as the government's budget update on October 28 approaches, facing pressure to address the cost of living crisis while maintaining fiscal prudence.",
  "summary": "The widely expected decision comes as surging energy prices have led central banks around the world to shift in favour of tightening monetary policy.",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 6,
    "also_reported_by": [
      {
        "outlet": "Guardian Business",
        "title": "Bank of England holds interest rates at 3.75% but warns war could force future rises",
        "url": "https://urgent.news/2026/09/17/bank-of-england-holds-interest-rates-at-3-75-but-warns-war-could",
        "published": "2026-09-17T12:04:07.000Z"
      },
      {
        "outlet": "Free Malaysia Today",
        "title": "Bank of England holds rate, warns of hike if Iran war persists",
        "url": "https://urgent.news/2026/09/17/bank-of-england-holds-rate-warns-of-hike-if-iran-war-persists-8027801",
        "published": "2026-09-17T12:08:55.000Z"
      },
      {
        "outlet": "FXStreet",
        "title": "Bank of England: November hike risk rises – Rabobank",
        "url": "https://urgent.news/2026/09/17/bank-of-england-november-hike-risk-rises-rabobank",
        "published": "2026-09-17T13:51:17.000Z"
      },
      {
        "outlet": "City AM",
        "title": "Borrowing costs fall after Bank of England ‘surprises’ markets with bond sale change",
        "url": "https://urgent.news/2026/09/17/borrowing-costs-fall-after-bank-of-england-surprises-markets-with",
        "published": "2026-09-17T15:14:38.000Z"
      },
      {
        "outlet": "Hellenic Shipping News",
        "title": "Bank of England floats a November rate hike if energy prices don’t come down",
        "url": "https://urgent.news/2026/09/17/bank-of-england-floats-a-november-rate-hike-if-energy-prices-dont",
        "published": "2026-09-17T17:00:55.000Z"
      }
    ]
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}