The Bank of England, with the support of John Healey's government, is trying to cushion the inflationary shock caused by the Middle East conflict by raising interest rates to 4%, while the forecast for inflation rises to 5%.
The Bank of England has raised its interest rate to 4%, for the first time since 2023, citing inflationary pressures caused by the war in Iran. The British government announced support measures for households, and the Bank of England expects inflation to peak at 5% in spring 2027.
