Markets predict Bank of England will hold rates in 2026 as bond yields soar on forecasts of prolonged conflict
Iran war drives oil prices above $100 a barrel
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UK interest rates are not expected to be cut this year and could even rise next summer, according to financial markets, in a dramatic reversal of forecasts before the US-Israel war on Iran.
Markets data on Monday showed that investors predict the Bank of England will most likely keep its base rate on hold at 3.75% for the remainder of the year, and would raise them to 4% next June.
