BoE Holds Interest Rates at 3.75%, Cites Falling Inflation

The Bank of England (BoE) has maintained interest rates at 3.75%, following its Monetary Policy Committee (MPC) meeting. Six members voted to keep rates on hold, while three voted for an increase.

This decision was anticipated by markets, which are currently grappling with the impact of rising oil prices due to the conflict in Iran. The BoE noted that inflation has fallen more than expected, but is expected to pick up again later this year due to energy price increases.

BoE officials stated that they are 'monitoring the situation very closely' and will ensure inflation returns to target in the medium term. US interest rates also remained unchanged, with the Federal Reserve (Fed) voting to leave rates steady.