How Trump’s Iran war could derail the economy – and the Labour government

The Bank of England’s monetary policy committee (MPC) has voted to keep interest rates on hold at 3.75 per cent. No shock there, given the uncertainties generated by the Iran war, but until the launch of Operation Epic Fury, pretty much everyone thought the Bank would take another of its baby steps and cut interest rates again by 0.25 percentage points. The change highlights how policymakers, investors, businesses and households are holding their breath at the moment – and such uncertainty could weaken the economy even in the short term.

What was the vote?