Interest rates set to be held steady as Iran war clouds inflation outlook

Use of archive footageUK borrowing costs are set to remain the same as concerns about the impact of the Iran war on inflation put any plans for a cut on ice, economists think.The Bank of England is widely expected to keep interest rates unchanged at 3.75% at the next announcement on Thursday.Some economists had previously been expecting policymakers to deliver a cut, prior to the escalation of the war in Iran.The pivot reflects the changing outlook for energy costs on the back of soaring oil and gas prices in recent weeks, and the potential for this to weigh on UK inflation.