Bank of England leaves interest rates on hold and lowers inflation forecast amid Middle East ‘uncertainty’ – as it happened

The Bank of England has maintained its interest rates and reduced its inflation forecast, citing uncertainty stemming from the conflict in the Middle East. This economic backdrop has also impacted major retailers, with Tesco reporting a significant slowdown in its UK sales growth. Tesco's comparable sales increased by 1.8% to £13.4 billion in the quarter ending May, a substantial drop from the 4.2% growth in the prior quarter and below analyst expectations of 2.3%. The ongoing Middle East conflict is noted as a key factor contributing to this economic uncertainty for households and businesses, influencing both central bank policy and retail performance.