BoE Holds Rates, But Three Policymakers Vote for Hike Amid Energy Concerns

The Bank of England (BoE) maintained its interest rate at 3.75% on Thursday, as widely expected.

However, a minority of three policymakers voted for a 25-basis-point hike to 4%, citing concerns over energy prices and inflationary pressures.

Crude and refined energy prices have remained volatile and above pre-conflict levels, leaving the impact on the UK economy uncertain. Consumer price inflation has fallen to 2.6%, but is expected to rise later in 2026 as higher energy costs continue to feed through.

The BoE highlighted that 'the risk of material second-round effects in price and wage-setting, against which policy needs to lean, is greater the longer higher energy prices persist.'