Bank of England Keeps Interest Rate at 3.75% Amid Volatile Energy Prices

The Bank of England has decided to keep its interest rate at 3.75% after a vote by its Monetary Policy Committee (MPC). The decision was made with a majority of 6-3, as three members voted to raise the rate by 0.25 percentage points.

The MPC's decision comes as energy prices remain volatile and above pre-conflict levels following events in the Middle East. Consumer price index (CPI) inflation has fallen to 2.6% since the previous meeting, but is expected to rise later this year due to higher energy prices.

The Bank of England said that monetary policy cannot influence energy prices, but is being set to ensure the economic adjustment is consistent with achieving the 2% inflation target sustainably.