1 month ago
BoE Holds Rates at 3.75% Amid Inflation Concerns
The Bank of England decided not to change its main interest rate, keeping it at 3.75%.
They did this because they are worried that higher energy costs and conflicts in the Middle East might make prices go up again.
In June, the price of things in the UK fell to 2.6%, the lowest in 15 months, but the bank thinks it could rise later.
The governor, Andrew Bailey, said the bank wants any price rise to be temporary and to get back to a 2% target.
The committee that makes these decisions had a split vote, with three members wanting a small rate increase, showing that some are more worried about inflation.
Bank of England held its benchmark Bank Rate at 3.75% on Thursday, a 6‑3 vote.
The decision reflects concerns that rising energy prices and Middle East tensions could revive inflation.
UK headline inflation fell to 2.6% in June, the lowest in 15 months, but the BoE warns it may rise again.
Governor Andrew Bailey said the bank aims to keep any inflation increase temporary and return to the 2% target.
The MPC split vote shows growing unease, with three members favoring a 25‑basis‑point hike.
- Who
- Bank of England, Monetary Policy Committee, Governor Andrew Bailey
- What
- Kept the benchmark Bank Rate unchanged at 3.75%
- Where
- United Kingdom
- When
- Thursday
- Why
- Rising energy prices and Middle East tensions could reignite inflation
Key facts
- Bank Rate
- 3.75%
- MPC Vote
- 6-3 to hold
- UK Headline Inflation
- 2.6% (June)
- BoE Target
- 2%
- Decision Date
- Thursday
Quotes
Andrew Bailey
Governor of the Bank of England
“"The conflict in the Middle East continues to mean high and volatile energy prices. Our job is to ensure any increase in inflation is temporary and that it returns to our 2% target,"”
firstpost.com
Sources
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