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Bank of England Raises Inflation Forecast Amid Oil Price Surge

3/25/2026

45 3 Full Breakdown

Summary

BoE Adjusts Inflation

Bank of England (BoE) revised its inflation forecast upward to 4% due to the ongoing conflict in the Middle East that has lifted oil prices.
CPI inflation remained at 3% in February.
The BoE kept its policy rate at 3.75%, while markets price in up to four rate increases this year.
Economists warn inflation data do not reflect conflict pressures, complicating policy decisions.

Summary

Greene Warns Inflation

Megan Greene, a member of the Bank of England's Monetary Policy Committee, warned the Iran war could severely impact the global economy.
Greene said oil and gas prices are unlikely to stabilise even if the conflict ends.
She cited damage to energy facilities and the risk of missile strikes as drivers of inflation.
Greene warned that Iran's control of the Strait of Hormuz could raise energy costs.

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BoE Adjusts Inflation

Bank of England (BoE) revised its inflation forecast upward to 4% due to the ongoing conflict in the Middle East that has lifted oil prices.
CPI inflation remained at 3% in February.
The BoE kept its policy rate at 3.75%, while markets price in up to four rate increases this year.
Economists warn inflation data do not reflect conflict pressures, complicating policy decisions.

1 / 2