BoE Holds Rates Steady Amid Inflation Concerns

UK financial markets reacted positively to the Bank of England's (BoE) decision to hold the Bank Rate steady at 3.75% on September 17, 2026, marking the sixth consecutive pause.

The immediate market reaction saw the FTSE 100 and FTSE 250 indexes climb by approximately 1.2%, reaching over a week's high.

However, BoE Governor Andrew Bailey issued a stern warning that if global energy costs continue to rise due to the protracted conflict in the Middle East, leading to persistent inflation and increased risk of 'second-round effects', further policy tightening would likely be necessary.