UK interest rate cut hopes dashed as Iran war sends energy prices soaring

The Bank of England is unlikely to cut interest rates in the UK amid the ongoing conflict in the Middle East - (Getty)

Economists have dramatically revised their forecasts for interest rates, now deeming a cut by the Bank of England next week "senseless" as escalating conflict in the Middle East drives up energy prices.

The shift means the Monetary Policy Committee (MPC) is widely expected to hold borrowing costs steady at 3.75% at its upcoming announcement on Thursday, a stark reversal from previous expectations of a reduction.