The Bank of England’s Monetary Policy Committee kept the benchmark rate unchanged at 3.75%, balancing energy price relief from Iran ceasefire developments against persistent domestic services inflation.
Oil prices surged to their highest level since 2022 after Axios reported US Central Command prepared strike plans against Iran; the Bank of England held rates but warned Middle East conflict could fuel inflation.
The Bank of England’s Monetary Policy Committee votes to hold the base rate at 3.75%, but warns that energy price shocks from the Iran conflict could force rate hikes within the year.