The Bank of England has hinted at further interest rate cuts, which could come as soon as August.
It decided to keep rates at 4.25% on Thursday with inflation, the rate prices rise at over time, remaining at its highest level for more than a year and above the Bank's target rate.
Governor Andrew Bailey said interest rates "remain on a gradual downward path", but warned: "The world is highly unpredictable."
There are concerns that the conflict between Israel and Iran, a major oil producer, could send energy costs higher and drive overall prices up, which would impact further rate decisions.
Since the bank's rate-setting committee last met in May, oil prices have risen by 26% while gas prices have grown by 11%.
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