BoE Holds Fire on Interest Rates Amid War Uncertainty

The Bank of England's Monetary Policy Committee (MPC) is set to keep interest rates at 3.75% on Thursday, according to expectations.

The MPC has been adopting a 'wait and see' approach, holding off on rate hikes or cuts until there is concrete evidence of how the war is affecting the UK economy.

Inflation has been lower than expected by the Bank and most forecasters, dipping to 2.6% in the year to June 2026, down 0.2 percentage points from May.