Bank of England governor warns ceasefire would create uncertainty, not rate cuts

Andrew Bailey wants to make one thing very clear: a ceasefire is not a green light for cheaper borrowing. The Bank of England governor stated that a 60-day ceasefire in the US-Israeli war with Iran would still leave too much uncertainty hanging over the UK economy to justify immediate interest rate cuts. The remarks, made in late May 2026, land at a moment when markets are desperately searching for any signal that relief is coming.

Bank of England governor warns ceasefire would create uncertainty, not rate cuts. Andrew Bailey wants to make one thing very clear: a ceasefire is not a green light for cheaper borrowing. The Bank of England governor stated that a 60-day ceasefire in the US-Israeli war with Iran would still leave too much uncertainty hanging over the UK economy to justify immediate interest rate cuts. The remarks, made in late May 2026, land at a moment when markets are desperately searching for any signal that relief is coming. The rate that didn’t move The BoE held its main policy rate at 3.75% during its most recent decision, a hold that reflects just how tangled the current macro picture has become. Energy prices remain volatile, largely because of ongoing disruptions in the Strait of Hormuz, the narrow waterway through which a massive share of global...