The Bank of England (BoE) is expected to delay an interest rate cut due to the Middle East conflict, which has increased inflation. The BoE has been reducing borrowing costs more slowly than the European Central Bank since 2024 due to concerns about Britain's increasing inflation. However, the jump in oil and gas prices could push inflation back to a level of 3.5%. Most economists believe a pause in the BoE's rate cuts is more likely than a full U-turn due to Britain's high unemployment rate. A Reuters poll of economists also indicated a 7-2 vote by the Monetary Policy Committee to keep Bank Rate at 3.75%.