Bank of England Keeps Interest Rate at 3.75% Amid Inflation Concerns

The Bank of England has maintained its base interest rate at 3.75% for the sixth consecutive time. This decision was made by the Monetary Policy Committee, which voted 6-3 in favor of keeping the rate steady. Three members of the committee advocated for a hike to 4%. Governor Andrew Bailey noted that prolonged volatility in energy prices increases the likelihood of a future rate hike.

The Bank of England has also suspended auctions of the remaining £488 billion government bond portfolio. The country's annual inflation rate stands at 3.1%, above the target of 2%.