Bank of England Holds Rates at 3.75%
The Bank of England kept interest rates at 3.75% on Thursday. The vote happened at noon.
Most members voted to hold rates. But one or two members may have voted to raise them.
Oil prices have soared close to the Bank's worst economic forecast. Brent crude briefly jumped above $126 a barrel on Thursday.
That is the highest price since Russia invaded Ukraine in 2022. The Iran war has pushed fuel prices up sharply.
This is driving inflation higher. Bank leaders said borrowing costs may need to rise.
This would happen if the energy shock keeps hitting the global economy. Several policymakers said they might raise rates if oil stays high.
But Governor Andrew Bailey warned that rate hikes are not coming soon. Analysts at financial company BNP Paribas predict two rate hikes in 2026.
They say inflation could peak at 4.5% early next year. The Bank's new economic forecasts are expected to show higher inflation and slower growth.
Key Terms 5
- interest rates The cost banks charge people to borrow money
- inflation When prices rise and money buys less than before
- Brent crude A widely used measure of global oil prices
- energy shock A sudden large rise in energy prices hitting the economy
- Iran war Conflict that began after US and Israeli strikes on Iran in February 2026