The Bank of England's Monetary Policy Committee (MPC) is expected to hold interest rates at 3.75% following its meeting. The decision, anticipated tomorrow, would see the committee continue its 'wait and see' approach.
This stance is likely to persist until clearer evidence emerges regarding the impact of the war on the UK economy. Inflation has been below the Bank's and most forecasters' expectations, with price growth dipping to 2.6% in the year to June 2026. This represents a 0.2 percentage point fall from May's figures.
Additionally, unemployment saw a slight decrease, reaching 4.9% in the three months leading up to June.