# Bank of England set to hold interest rates despite Iran war pushing up inflation

By Maike Currie — 2026-04-24

Maike Currie, vice president of personal finance at PensionBee, said: “A resilient labour market, with unemployment unexpectedly falling, gives policymakers breathing room, keeping wage pressures alive and reducing the urgency for immediate rate cuts.

“But the consumer picture is less convincing than it appears on the surface.

“Retail sales have been propped up by fuel stockpiling and the ‘lipstick effect’ where households cut back on big-ticket spending but still reach for small, affordable treats like beauty products, coffee or low-cost fashion to lift their mood. It’s resilience, but a fragile kind.

“A hold remains the most likely outcome next week, reinforcing that policymakers won’t jerk the wheel every time inflation spikes, even with energy prices rising. However, if these pressures persist, further rate hikes later this year can’t be ruled out.”

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