Related topic: Inflation

This comes amid continued disruption in the Strait of Hormuz and significant damage to energy infrastructure across the Gulf.

There is growing market speculation that the Bank of England could increase rates as a direct consequence of the ongoing Iran-related conflict.

Some mortgage lenders cancelled planned rate cuts earlier in the week while others have increased rates.

GDP is expected to grow more slowly this year but faster in 2027 and 2028, the latest OBR forecasts show.

Lower inflation and interest rate cuts will help unlock money so it can be spent in the economy, Martins said.

Inflation has fallen from 3.4% in December to 3% in January.

Economists are now predicting further Bank Rate reductions 'sooner rather than later'.

How will the Monetary Policy Committee (MPC) respond if US policy becomes significantly looser than UK policy?

Industry experts now say a February Bank Rate cut is now almost entirely off the table.

The move means Bank Rate is at its lowest level in almost three years.