BoE Holds Interest Rate Steady Amid Energy Price Risks

The Bank of England (BoE) has decided to keep its key interest rate at 3.75%, as predicted by economists. The Monetary Policy Committee voted with a 6-3 split, with Megan Greene, Huw Pill, and Catherine Mann dissenting from the majority decision. They wanted a 25 basis point hike. The BoE stated that all members agree energy prices remain skewed to the upside.

The interest rate decision comes after headline UK inflation fell to 2.6% in June, its lowest level in 15 months. However, Megan Greene noted that inflation has not yet reached a peak.