BoE Holds Interest Rate Amid Energy Price Hike Warnings

The Bank of England has maintained its interest rate at 3.75% for the fifth consecutive time despite warning that energy prices and an AI-driven memory chip shortage will push inflation higher.

According to forecasts by the central bank, UK inflation is expected to average around 3% this year before slowing down to 2.7% in 2027 and 1.8% in 2028.

The Bank of England's Monetary Policy Committee (MPC) voted six to three in favor of keeping interest rates steady at the current level, with Governor Andrew Bailey cautioning that high and volatile energy prices will drive inflation up later this year.