BoE Holds Interest Rates at 3.75% Amid Ongoing Global Tensions

The Bank of England has held its interest rates at 3.75% for the fifth consecutive meeting, in line with economists' expectations.

This decision was made despite a fall in inflation in June and concerns that energy prices could rise again due to renewed hostilities between Iran and the US in the Middle East.

The Bank's Monetary Policy Committee voted 6-3 to keep the rate at 3.75%, with three members voting for an increase today.

Richard Carter, head of fixed interest research at Quilter Cheviot, said that 'the market is pricing in at least one interest rate rise in the UK this year', and that while new government announcements may help lower inflation marginally, they will not have a significant impact on interest rates.