Bank of England kept monetary policy unchanged amid tensions in Middle East

The Bank of England kept borrowing costs unchanged at 4.25%. Six out of nine members of the Monetary Policy Committee voted to hold interest rates steady, while the remaining members favored a quarter-point easing of monetary policy, Bloomberg reports.

The regulator's decision was influenced by several factors. These included slowing economic growth in the country, accelerating inflation, and escalating geopolitical tensions in the Middle East. At the same time, the Bank of England stays vigilant about potential external risks, including rising oil prices.

Meanwhile, the situation in global trade has shown slight improvement. Last week, representatives of the US and China came to an agreement on rare earth metal exports. The direct impact of trade uncertainty on global GDP may weaken. However, the committee remains concerned about the effects of these events on the UK economy, Bloomberg notes.

The regulator's officials are trying to strike a balance between curbing accelerating inflation and preventing an economic slowdown in the country, but their task has become more complicated due to the renewed escalation of the Middle East conflict.