energy prices News & Analysis
2 articles
Market Mood
UK Energy Prices Forecasted to Rise 13% Starting July 2023
Household energy prices in the UK are set to increase by 13% starting in July 2023, with the typical annual bill expected to rise by £209 to £1,850. This change is attributed to rising wholesale energy costs influenced by the Iran war, particularly affecting the global gas supply due to the closure of the Strait of Hormuz. Ofgem will publish the new price cap affecting approximately 19 million households on variable tariffs. It is anticipated that further price increases may occur by autumn and winter, leading to ongoing financial challenges for consumers.
Read More
Bank of England Holds Interest Rate at 3.75% Amid Iran Conflict
The Bank of England (BOE) decided to maintain its benchmark interest rate at 3.75%, with an 8-1 vote, as the Iran war impacts energy prices and inflation expectations in the U.K. Following this decision, the British pound increased by 0.4% against the dollar to $1.3473. The BOE cautioned that inflation could rise to 3.5% this year, with a potential peak of 6.2% in the most severe scenario due to rising energy costs. These developments suggest challenges for monetary policy aimed at achieving a sustainable 2% inflation target.
Read More