Andrew Bailey says ‘still inflationary pressure in pipeline’ despite US and Iran nearing peace deal as interest rates kept on hold

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The governor of the Bank of England has warned consumers to expect higher costs this year as a result of the conflict in the Middle East, despite falling oil prices as the US and Iran near a peace deal.

Speaking after the Bank kept interest rates on hold at 3.75%, Andrew Bailey said there was “still some inflationary pressure in the pipeline” after the conflict pushed up energy prices.