The Bank of England (BoE) is expected to keep borrowing costs steady while assessing the impact of the Iran war. The BoE kept borrowing costs in March as it awaited the extent of inflationary and growth impacts from the conflict. However, investors predict that rate hikes are likely later this year. Some analysts suggest that as many as three policymakers might call for Bank Rate to rise to 4.0% to prevent headline inflation from pushing up wage demands and prices charged by companies. The Monetary Policy Committee (MPC) may reiterate its readiness to act, but any hawkish tone does not necessarily mean immediate rate rises. The bank is also due to publish an updated version of its economic forecasts since the war, likely showing higher inflation and weaker growth in 2026 and 2027.