BoE Warns UK Inflation to Rise Amid Mideast Conflict, Holds Rate; Oil Prices Surge

The Bank of England (BoE) maintained its benchmark interest rate at 3.75% despite warning that UK inflation is set to rise again, driven by elevated energy prices stemming from the US-Iran conflict. The central bank's governor, Andrew Bailey, noted that while inflation has fallen, Middle East tensions mean high and volatile energy prices will cause inflation to increase later this year, with a central forecast of 3.2% by year-end. This decision followed the Federal Reserve's move to hold US rates steady. Surging crude oil prices, linked to renewed fighting, are a key factor. For Pakistan, sustained high crude oil prices could pressure the USD/PKR exchange rate and fuel local inflation, potentially increasing demand for gold as a hedge.

بحوالہ / Source: www.brecorder.com