Bank of England Holds Rates at 3.75% Amid Inflation Fears

The Bank of England's Monetary Policy Committee (MPC) held its interest rate at 3.75% in July 2026, despite rising inflation concerns triggered by the Iran war.

The decision was not unanimous, with three members voting to increase the rate by 0.25 percentage points to 4%. The MPC cited volatility in crude and refined energy prices as a key factor in their decision.

Bank of England Governor Bailey expressed concerns about broader slowing in domestic inflation, but noted that there is currently a lack of evidence for second-round effects on prices.