Bank of England holds interest rates at 3.75% as inflation fears mount
Policymakers voted 6-3 to hold, with June inflation easing to 2.6% and three members warning that energy risks still threaten prices.
- On Thursday, the Bank of England's Monetary Policy Committee voted 6-3 to keep the Bank Rate at 3.75%, pausing to assess fallout from renewed fighting in Iran.
- Consumer price inflation slowed to 2.6% in the 12 months through June, a 15-month low that gave the Committee breathing room to hold the benchmark rate.
- Committee members Megan Greene, Huw Pill, and Catherine Mann dissented, voting for a 25 basis point hike and warning that prolonged energy uncertainty in the Gulf and Red Sea threatened inflation targets.
- Renewed fighting pushed Brent crude above $100 a barrel on July 23, with prices trading at about $92 on Thursday, reflecting ongoing Middle East uncertainty.
- The Federal Reserve on Wednesday kept its key rate at 3.5% to 3.75%, with Chairman Kevin Warsh saying the Fed "will not hesitate to act" to keep inflation under control.
41 Articles
41 Articles
UK Keeps Benchmark Interest Rate at 3.75%... Wary of Price Uncertainty Stemming From the Middle East
The Bank of England (BOE), the UK's central bank, held a Monetary Policy Board meeting on the 30th (local time) and maintained its base interest rate at 3.75% per annum. Since lowering the base rate by 0.25 percentage points last December, the BOE has decided to keep rates unchanged at all five meetings held this year. Six of the nine Monetary Policy Board members voted for the rate to remain unchanged, while the remaining three argued that the …
Britain is particularly affected by the Iran war due to its dependence on natural gas imports. New Prime Minister Burnham now wants to show that he can improve living conditions.
The Bank of England (BoE) maintained the basic interest rate unchanged by 3.75% on Thursday, in a decision again divided. Of the nine directors, six were in favour of continuity of interest at the current level, while three members of the college voted to raise the rate by 0.25 percentage point. Exclusive material for subscribers. To have full access, access the link of the subject and register.
Coverage Details
Bias Distribution
- 44% of the sources are Center
Factuality
To view factuality data please Upgrade to Premium
