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Bank of England

  • Petrol retailers vindicated after Reeves ‘profiteering’ claims

    Retail

    Petrol retailers have been vindicated of “price gouging”, pouring cold water on the government’s accusations of profiteering from the war in Iran. The Competition and Markets Authority (CMA) found that higher fuel prices in the UK were caused by the rising cost of oil, rather than by retailers expanding their margins to profit from the [...]

    Breaking news concept with digital globe and fast-moving data streams on a dark background, suitable for a business website.
  • Natwest shares slip as bank upgrades income on higher interest rates

    Banking

    Natwest breezed past profit expectations in the first quarter of the 2026 and is predicting a greater bump to its bottom line on the back of higher-than-expected interest rates. The FTSE 100 giant booked a £2bn pre-tax profit in the first three months of the year, up from £1.8bn in the same period last year [...]

    NatWest bank branch exterior with signage, reflecting current branch network changes amidst financial industry updates
  • Bank of England signals interest rate hikes ahead despite April hold 

    Economics

    The Bank of England has all but confirmed that interest rates will be hiked in the coming months as oil prices have shot up, despite opting to hold them in a meeting on Thursday.  The Bank’s Monetary Policy Committee warned interest rates could climb back to 5.25 per cent from the current level of 3.75 [...]

    Governor Andrew Bailey has launched a defence of the Federal Reserve's independence.
  • Lloyds shares upgraded to ‘Buy’ after interest rates tailwind

    April 30, 2026

    Analysts at UBS slapped a ‘Buy’ rating on shares in Lloyds Banking Group as the financial services giant looks to receive a bump to its bottom line from the elevated interest rate path. Jason Napier, analyst at UBS, said: “Given the tailwinds from rate hedges… we see strong future momentum in profits as a relatively [...]

  • Bank of England Live: Interest rates held as hawks warn of ‘highly uncertain’ energy prices

    April 30, 2026

    Welcome back to the City AM liveblog. The Bank of England’s Monetary Policy Committee has today decided to hold interest rates at 3.75 per cent in a hawkish display. In last month’s decision, the Bank held rates in a unanimous decision. Afterwards, short-term gilt yields, which reflect government borrowing costs, sharply rose as traders priced [...]

  • Twilight zone: Markets await ‘highly uncertain’ interest rates decision

    April 30, 2026

    City analysts are eagerly anticipating a “highly uncertain” Bank of England decision on interest rates that could swing prices in either direction.  The Bank’s Monetary Policy Committee is widely expected to hold interest rates at its upcoming decision at 12pm on Thursday, though analysts have warned that a vote split and hawkish messaging around the [...]

  • Lloyds shares drop after income upgrade on higher interest rates

    April 29, 2026

    Lloyds Banking Group has upgraded its income targets for the year as the bank expects to bring in more cash as interest rates remain elevated from the Iran war. The FTSE 100 financial giant – which counts Lloyds Bank, Halifax and Bank of Scotland among its subsidiaries – said it expects net interest income to [...]

  • UK set to suffer £35bn hit from Iran war as growth downgraded again

    April 29, 2026

    The UK risks finding itself on the brink of recession as a result of the Iran war, a leading economics think tank has warned, as the potential damage to Rachel Reeves’ fiscal headroom and the threat of interest rates hikes has been laid bare in a new report.  In what will come as dire reading [...]

  • Housing stocks drag on FTSE as inflation woes build into Bank of England interest rates call

    April 28, 2026

    Fears about the impact of interest rates on the UK’s struggling economy echoed around the City into this week’s set-piece interest rate meeting at the Bank of England. A trio of Tuesday trading updates from London-listed firms with direct exposure to the housing market revealed rising costs.  The insight reverberated across an industry which depends on affordable mortgages [...]

  • Government borrowing costs soar as Iran war drags on

    April 28, 2026

    The government’s borrowing costs have risen to their joint highest level since the 2008 financial crisis, after a sharp jump in the oil price prompted a sell-off in UK debt because of concerns over inflation. The yield on the 10-year gilt – the main benchmark for any government’s long-term ability to borrow – climbed back [...]

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