Could UK interest rates go up?

the bank of england held rates at 3.75% in march, keeping them at the lowest level since february 2023. expectations have reversed sharply, with some traders now predicting two increases by the end of 2026, potentially taking the rate to 4.25%. this shift follows the outbreak of the us-israel war with iran, which has pushed up global energy costs and is expected to increase inflation. the vote to hold rates in march was unanimous, with governor andrew bailey saying the bank would not rush a decision. the next meeting is 30 april. the average rate on a new two-year fixed mortgage has jumped from 4.83% at the start of march to 5.83%. about 800,000 low fixed-rate deals are set to expire each year through 2027, meaning sharply higher borrowing costs for those homeowners.