Bank of England Holds Interest Rate Steady Amid Energy Price Surge

The Bank of England (BoE) has decided to keep its benchmark interest rate at 3.75 percent, despite rising global energy prices that have pushed up inflation in Britain.

According to the bank, global energy prices have increased significantly since the July Monetary Policy Report and remain volatile.

The spot prices of Brent crude and British wholesale gas have risen by 36 percent and 78 percent, respectively, since the period leading up to the July Report.

Data from the Office for National Statistics showed that Britain's consumer price index (CPI) rose 3.1 percent year on year in August, up from 2.9 percent in July.

The BoE expects CPI inflation to rise further to around 3.75 percent in the last quarter of 2026 and slightly above 4 percent in the first quarter of 2027, based on energy prices at the close of business on Monday.