BoE Holds Interest Rates Amid Energy Price Concerns

The Bank of England kept interest rates at 3.75% on Thursday, but the decision was not unanimous as policymakers struggled to balance domestic inflation against rising geopolitical risks.

Energy prices remain a key concern for the central bank, with Governor Andrew Bailey warning that higher oil and gas costs could reignite price pressures.

Bailey noted that while underlying domestic inflation is moderating, the conflict in the Middle East has introduced fresh uncertainty into the inflation outlook through volatile energy prices.