---
title: "Bank of England’s Bailey: Interest rates hike may not be needed"
type: "News"
locale: "en"
url: "https://longbridge.com/en/news/288055518.md"
description: "Bank of England Governor Andrew Bailey stated that interest rates may not need to rise in response to the Iran war, as the bank has already tightened monetary policy by removing the prospect of future rate cuts. He noted that inflation is likely to increase due to the conflict, but the weak UK economy may mitigate second-round effects. Bailey emphasized that the bank's messaging has already raised borrowing costs in the economy, despite the central rate remaining unchanged."
datetime: "2026-05-29T10:53:07.000Z"
locales:
  - [zh-CN](https://longbridge.com/zh-CN/news/288055518.md)
  - [en](https://longbridge.com/en/news/288055518.md)
  - [zh-HK](https://longbridge.com/zh-HK/news/288055518.md)
---

# Bank of England’s Bailey: Interest rates hike may not be needed

The Bank of England may not raise interest rates in response to the Iran war and has already effectively tightened monetary policy by taking the prospect of future rate cuts off the table, governor Andrew Bailey has said. In a speech in Iceland, the central banking chief said that inflation is “likely to go higher” \[...\]

### Related Stocks

- [ISF.UK](https://longbridge.com/en/quote/ISF.UK.md)
- [VUKE.UK](https://longbridge.com/en/quote/VUKE.UK.md)
- [SUK2.UK](https://longbridge.com/en/quote/SUK2.UK.md)

## Related News & Research

- [5 charts show how nearly 6 months of war have hammered Iran's economy](https://longbridge.com/en/news/295424718.md)
- [US to ramp up economic isolation of Iran, eyes indefinite naval blockade](https://longbridge.com/en/news/295903739.md)
- [Inflation protection is on sale](https://longbridge.com/en/news/295777369.md)
- [Hormuz Strait to remain closed unless U.S. meets Iran's conditions, Iranian security council says](https://longbridge.com/en/news/295558791.md)
- [Uh-oh! The inflationary effects of the Donald Trump-led Iran war now extend well beyond the energy sector](https://longbridge.com/en/news/295328403.md)