Kevin Brown, savings expert at Scottish Friendly, said: “The world has changed dramatically over the past few weeks, with the situation changing on a daily basis. Therefore, the chance of a movement in interest rates at today’s meeting was always likely to be a long shot.

“But fallout from the tensions in the Middle East is already being felt acutely here in the UK. Rising oil and gas prices have already pushed up swap rates – the main driver of fixed-rate mortgage pricing – and triggered a repricing of mortgage deals.

“Higher costs risk lifting headline inflation in the near term. However, this is largely imported rather than domestically generated, which helps explain why the Bank decided not to move today.

“By holding rates, the Bank is effectively buying time to assess whether these pressures persist, rather than signalling any renewed, definitive shift towards tightening.

“For investors, this kind of environment can be unsettling, but short-term volatility is an inevitable feature of markets, particularly when driven by geopolitical events. Maintaining a long-term perspective and avoiding reactive decisions can be key to building wealth over time.”