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.
99 Articles
99 Articles
Markets were highly likely to decline in this scenario, as inflation, although high, remains below the principal interest, currently at 3.75%.
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%…
Coverage Details
Bias Distribution
- 50% of the sources are Center
Factuality
To view factuality data please Upgrade to Premium
