Bank of England holds interest rates at 3.75% despite rising inflation
- The Bank of England's Monetary Policy Committee voted 6–3 to hold the benchmark interest rate at 3.75% for the sixth consecutive meeting.
- The decision comes despite mounting pressure to curb inflation, which rose to 3.1% in August—up from 2.9% in July and well above the central bank's 2% target.
- Central bank officials pointed to persistent energy price spikes, driven largely by ongoing conflict and geopolitical tensions involving Iran, as a major factor fueling the recent uptick in domestic inflation.
- The MPC weighed rising cost-of-living pressures against a sluggish domestic economy marked by slowing wage growth, falling job vacancies, and unemployment hovering around 5%.
- Financial markets and economic analysts increasingly project that the central bank will be forced to implement an interest rate hike at its next meeting in November, potentially raising the base rate to 4.0%.
63 Articles
63 Articles
The Bank of England (BOE), the UK's central bank, maintained its benchmark interest rate at 3.75% per annum. However, it left open the possibility of a further rate hike if the rise in global energy prices is prolonged. The BOE held a Monetary Policy Committee (MPC) meeting on the 17th (local time) and decided to keep the benchmark rate unchanged at 3.75%. This follows the BOE's six meetings held this year since cutting the benchmark rate by 0.2…
The British central bank leaves its interest rate at 3.75 percent despite the recent rise in inflation. However, three of the central bankers voted in favour of an increase.
Bowen Island Undercurrent
Bank of England holds rates but appears ready to hike soon
LONDON (AP) — The Bank of England kept the U.K.’s main interest rate unchanged at 3.75% Thursday even though inflation in the United Kingdom has risen to a five-month high as the fallout from the Iran war continues to ratchet up fuel prices.
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