Bank of England Expected to Keep Interest Rates Unchanged Despite Rising Inflation
- On Thursday, the Bank of England is expected to keep interest rates on hold at 3.75%, though investors are watching for any hint that surging energy prices might force it to follow the U.S. Federal Reserve's recent borrowing cost increase.
- British natural gas and Brent crude futures have surged 20% this month, threatening to push inflation further above the Bank's 2% target, which the central bank has missed in all but three months of the last five years.
- Financial data shows the average five-year fixed mortgage rate at 5.83%, while most economists polled by Reuters last week expected the Bank to maintain the 3.75% rate through year-end.
- The Telegraph reported Tuesday that the Bank may cease sales of 20-year and 30-year gilts, a shift that could offer fiscal room for Finance Minister John Healey ahead of his October 28 budget statement.
- Financial markets currently point to an 80% chance of a rate hike in November, with analysts from investment banking firm Evercore ISI stating that "Nowhere is the gap between market pricing and policymaker expectations more stark than in the UK.
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The Bank of England (BoE, the central bank of the United Kingdom) maintained the interest rate unchanged, at 3.75% to the same rate, in line with market consensus. The decision was divided, with three votes for a high of 0.25 percentage point (p.p.) and six for a maintenance. The monetary authority, however, acknowledges that inflationary risks are tilted upwards. Subject matter exclusive to subscribers. To have full access, access the link of t…
UK Interest Rates: Bank of England Holds Rate at 3.75% as Inflation Warning Intensifies
نُشر هذا المقال أولاً عبر Cedarnews.net. لمتابعة المزيد من الأخبار والتقارير الحصرية، زورونا على موقعنا. The Bank of England has kept UK interest rates unchanged at 3.75% on Thursday, September 17, 2026, in a closely watched decision released at midday as inflation pressures continue to build across Britain. The Monetary Policy Committee voted 6-3 to keep Bank Rate at 3.75%, while three members supported an immediate quarter-point increase to 4%…
The committee voted by a majority of 6 to 3 to leave the rate unchanged. The three dissident members leaned towards an increase of 0.25 percentage points, up to 4%.
Bank of England holds rates at 3.75% as inflation hits five-month high
The Bank of England has kept its main interest rate at 3.75%, but three of its nine policymakers voted to raise it, exposing a divided committee as the energy shock from the Iran war pushes inflation to a five-month high of 3.1%.
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