Bank of England Keeps Interest Rate at 3.75% Amid Iran Conflict Fears

The Bank of England (BoE) kept its key interest rate at 3.75% for the fifth time this year, giving policymakers breathing space to assess the fallout from renewed fighting in Iran.

The bank's monetary policy committee voted 6-3 to keep the rate at 3.75%, in line with most economists' expectations.

Renewed attacks by the United States and Iran sent oil prices soaring, with Brent crude jumping to over $100 a barrel on July 23 from less than $71 three weeks earlier.

The BoE's decision highlights growing tensions within central banks about how to respond to stubbornly high inflation and concerns that the war in Iran will lead to another round of price increases.