BoE Keeps Interest Rate Unchanged at 3.75%

The Bank of England (BoE) kept its interest rate unchanged at 3.75%, in line with analysts’ expectations. Six members of the Monetary Policy Committee voted to maintain the current rate, while three members supported a 0.25 percentage point hike to 4%. The BoE noted that the prolonged conflict in the Middle East has contributed to higher energy prices and increased market volatility. The bank also expects inflation to rise further in the coming months, with upside risks to the inflation outlook increasing, although developments in the Middle East could significantly change the outlook.