The Bank of England is reportedly set to hold interest rates today as concerns rise about the impact of conflict in the Middle East on inflation.
Market predictions, The Times reports, are that the monetary policy committee at the bank will elect to freeze interest rates at 3.75%.
Prior to the outbreak of conflict in the region a matter of weeks ago, investors has expected the bank to lower rates to 3.5% before delivering two further reductions later in the year.
But the rapidly developing and volatile situation in the Middle East has sent oil and gas prices soaring, increasing the likelihood of inflation remaining above the Bank of England's target of 2% for the rest of the year and of interest rate cuts being delayed.
Meanwhile, the US central bank has voted to hold interest rates as well as the war with Iran creates economic uncertainty.
The decision keeps the Federal Reserve's key interest rate in the range of 3.5%-3.75%, the BBC reports.
It comes despite pressure from President Donald Trump to slash the cost of borrowing.
Federal Reserve board members still expect to lower interest rates at least once later this year. But chairman Jerome Powell was more cautious, saying the fed did not know what effects the Iran war would have, adding: "Really no one does."
FSTE100
The UK's flagship share index, the FTSE 100, was down 251 points at 10,178 shortly after opening this morning.
Brent crude oil futures were up 4.17% at $113.74 a barrel.
Companies reporting today
- Alibaba* - Q3 Results
- Atalaya Mining Copper - Full Year Results
- Energean - Full Year Results
- IG Group Holdings - Full Year Results