The Bank of England is in no rush to raise interest rates while the outcome of the Iran war remains uncertain and the UK’s growth rate stays weak, Governor Andrew Bailey has said. In a signal that borrowing costs will remain at 3.75% at least during the summer, Bailey said it was tolerable for inflation to stay above the Bank’s 2% target during the current crisis. However, that would change if a more permanent increase in prices began to take effect.
Oil prices fell on Friday as investors hoped for an end to the US-Israel war on Iran, leaving the commodity poised for one of the biggest monthly declines ever. The price of Brent crude futures fell by 1.3% to $91.54, nearing a fall of 17% since the start of May. West Texas Intermediate fell by 1.4% to $87.64 a barrel, down 7% from the peak earlier this week. The optimism came after Donald Trump circulated a draft peace agreement for the war in Iran among allies.
Asda has agreed a deal to update its online grocery store and home deliveries from next year using technology from Ocado. Ocado software will be used to support Asda’s grocery website and deliveries from its stores and “dark stores” from early 2027. Asda will also use Ocado’s technology to manage deliveries for apps such as Uber Eats, Deliveroo and Just Eat, and for click-and-collect services. The deal means Ocado will soon provide the technology supporting deliveries at three of the UK’s biggest grocers.
The government has been urged to push water companies to carry less debt after South East Water became the latest supplier to breach the terms of its operating licence. South East Water lost one of its two investment-grade ratings from Moody’s Investors Service on Thursday, after 22,000 people in Kent suffered from water outages. Mike Martin, the Liberal Democrat MP for Tunbridge Wells, said the downgrade was “deeply concerning” and called for fundamental reform of debt levels. Cat Hobbs, founder of the campaign group We Own It, said environment secretary Emma Reynolds should put South East Water into special administration and nationalise it.
