IMF says Bank of England may not need to raise rates and should stay ready to cut

The IMF said Monday the Bank of England could keep its 3.75% Bank Rate unchanged for the rest of the year, while remaining prepared to cut if conditions weaken. It warned that higher energy prices tied to the Iran war may lift headline inflation this year and complicate policy, even as it upgraded the U.K.'s 2026 growth outlook and raised its 2025 growth forecast to 1% from 0.8%.