BOE Holds Interest Rate as UK Inflation Surpasses 3%

The Bank of England kept its benchmark interest rate at 3.75% on September 17, marking the sixth consecutive hold since December 2025.

This decision comes as inflation in the UK hit 3.1% in August, exceeding the government's 2% target and crossing the 3% threshold for the first time since March.

The Monetary Policy Committee voted 6-3 to maintain the current rate, with three members advocating for a 25 basis point hike to 4.0%.

Rising fuel costs are driving inflation, as the Bank of England points out ongoing geopolitical tensions in the Middle East and persistent supply chain disruptions.