BOE Holds Rate at 3.75%, Cites Price Shock and Sluggish Growth

The Bank of England (BOE) has decided to hold its policy rate at 3.75%, marking the sixth consecutive hold since December last year.

This decision was made by the BOE's Monetary Policy Committee, which voted 6-3 to keep the rate unchanged, with three members advocating for a 0.25 percentage point increase to 4.00%.

The hold is attributed to the price shock from the war in Iran and sluggish domestic growth.

BOE Governor Andrew Bailey noted that the impact of rising global energy costs on British prices and wage-setting has been limited so far, but warned that prolonged volatility would increase the effect on inflation and the likelihood of rate hikes to return inflation to its 2% target.