Bank of England Holds Rates Amid Iran War Uncertainty

The Bank of England has decided to keep interest rates at 3.75%, marking the sixth consecutive time that borrowing costs have not been changed.

This decision follows a split vote among the nine-member Monetary Policy Committee, with six members voting to hold rates steady and three calling for an increase to 4%.

According to Governor Andrew Bailey, who voted for a hold, higher global energy costs have had a limited impact on inflation in the UK so far, but the longer this volatility persists, the bigger its effect will be, making it more likely that interest rates will need to be raised.