The UK shows signs of an economic comeback

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There were glimmers of good news for the British economy this week. Inflation has held steady at 2.8%, despite forecasts that it would climb to 3%, and there was an unexpected slight dip in unemployment, which fell from 5% to 4.9%. Yesterday the Bank of England decided to hold interest rates steady, and it now predicts inflation stemming from the Iran war to peak at 3.25% at the end of the year, lower than previously thought. The deal between Iran and the US, if it holds, should alleviate economic pressures by getting oil flowing again through the Strait of Hormuz. But it remains to be seen how deeply the recent spike in energy costs will trickle down to the rest of the economy. Companies are holding back on new hires out of caution.