UK interest rate rise ‘increasingly likely’ with high energy prices, as inflation fears hit bonds – business live

The Bank of England is warning that interest rates may need to rise to combat inflation caused by high energy prices. This is because the ongoing conflict in the Middle East is expected to keep pushing up UK inflation in the coming months. If interest rates do rise, it could make borrowing more expensive and potentially slow down economic growth, which could have a negative impact on the stock market and trade.

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The Bank of England is warning of inflation risks from high energy prices. This could lead to higher interest rates to control inflation.

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