Bank of England Holds Interest Rate Amid Ongoing Economic Uncertainty

The Bank of England has maintained its interest rate at 3.75%, as expected by industry experts, in a 6-to-3 vote decision.

Inflation is still a major concern for the Bank, and it says that keeping rates steady will help ensure inflation remains on track to meet the 2% target in the medium term.

Commenting on the decision, Neil Rudge of Shawbrook said that SMEs remain cautious due to ongoing global uncertainty, including geopolitical events and supply chain disruptions.

James Burgess of Atradius UK warned that holding rates will prolong the squeeze on businesses, which could worsen if higher energy prices force a rate rise in the coming months.