The Iran war has put the brakes on the next Bank of England rate cut

Economists now say the Bank of England is unlikely to cut interest rates in March or April as was widely predicted before the war in Iran erupted. That raises the prospect of 'higher-for-longer' UK policy, a headwind for rate-sensitive assets and gilts and a potential driver of repositioning in FX and equity allocations.

Analysis

Economists now say the Bank of England is unlikely to cut interest rates in March or April as was widely predicted before the war in Iran erupted. That raises the prospect of 'higher-for-longer' UK policy, a headwind for rate-sensitive assets and gilts and a potential driver of repositioning in FX and equity allocations.