Bank of England Stays Course Amid UK Inflation Surge

The Bank of England has kept its main interest rate at 3.75%, despite inflation rising to a five-month high in the UK. The decision was unanimous, with three members voting against a hike to 4%. The central bank cited ongoing energy price volatility and higher crude prices as reasons for maintaining the status quo.

The MPC's Summary of Economic Projections shows a median forecast of two hikes for 2026 and tightening in 2027. However, some economists are forecasting further inflation increases, with UK CPI rising to above 3.1% in coming months.