Bank of England warns oil spike may lift interest rates
The Bank of England is warning that interest rates might need to go up soon, thanks to rising energy costs driven by the U.S.-Israel conflict with Iran.
If oil prices shoot past $130 a barrel (they're at $126 now), inflation could jump to 6.2% next year and rates could peak at 5.25%.
Not great news if you've got a loan or are thinking about borrowing.
BoE signals 3.75% rate may rise
Right now, the UK interest rate sits at 3.75%, but the bank has hinted it could rise by at least one-half percentage point this year if fuel prices stay high.
The Monetary Policy Committee has mapped out three possible paths: oil prices drop and inflation chills (best case), prices hover above $80 and inflation edges up, or oil stays expensive and things get pricier for everyone.
Either way, they're keeping an eye on how all this impacts your wallet.