Why Bank kept interest rates on hold despite message for UK to brace itself for Trumpflation

Inflation is now expected to peak above 3.5% by the end of this year, but could go above 6% under the Bank of England’s worst-case scenario. Photograph: Toby Melville/Reuters

The message to the UK’s crisis-weary households from the Bank of England is: brace yourself for Trumpflation – and the higher interest rates it may yet take to rein it in.

Reading the Bank’s quarterly monetary policy report, it is not difficult to understand the fury Rachel Reeves expressed while in Washington this month at the “folly” of the US president’s war on Iran – its economic consequences will hit the UK hard.