The impact of the Iran war is expected to impact interest rates, with some predicting an increase in potential increases in the coming months. The Bank of England's rate-setting committee had previously held the benchmark rate at the start of February, with Governor Andrew Bailey suggesting there would be a reduction in rates later in the year. The base rate is what the Bank charges other banks and building societies to borrow money, and it also influences what they charge their own customers for mortgages and savings.