Bank of England Holds Interest Rate as Iran Conflict Looms

The Bank of England has maintained its key interest rate at 3.75% following its latest policy meeting, marking the fifth time this year that the central bank has held the rate steady.

This decision was influenced by a larger-than-anticipated decline in the inflation rate last month, which provided policymakers with additional time to evaluate the economic consequences of renewed hostilities in Iran.

The Monetary Policy Committee voted 6-3 to keep the rate unchanged, a move that aligned with the expectations of most economists. The rate has remained at this level since December, following four reductions implemented in 2025.