Until the United States and Israel launched the attack on Iran that started the war less than three weeks ago, it was viewed as a near certainty that the Bank of England would cut interest rates again on Thursday. Now it's a near-certainty that it will leave its base rate unchanged at 3.75%.
The start of the Iran war on Feb. 28 set in train a chain of events that has done much to upend global economic forecasts, not least in how it will affect prices. The longer the Iran war and the associated closure of the Strait of Hormuz go on, the greater the economic pain will be. A fifth of the world’s crude oil goes through the strait.
