Bank of England Governor Andrew Bailey left the door open for an interest rate rise yesterday as he warned the world felt ‘as uncertain and volatile’ as it did when the US-Iran war erupted. Mann blamed the ‘collapse’ of the US-Iran ceasefire, the ‘widening of the Middle East conflict’ and ‘associated volatility in energy prices’. Bailey said holding rates was ‘appropriate’ even as global conditions became more ‘inflationary’ – with domestic circumstances ‘more benign’. ‘The longer tensions in the Middle East continue, the higher the risk of a policy shift in the coming months,’ said Deutsche Bank’s chief UK economist Sanjay Raja. The Bank said it was ‘standing ready to act’ if conflict persists and inflation stays stubbornly above its 2 per cent target.