BoE Holds Steady Amid Oil Price Volatility Fears

The Bank of England (BoE) kept interest rates steady at 3.75% on Thursday, despite some policymakers calling for an increase.

This decision was influenced by the minimal impact of the recent Iran-related oil shock on the broader economy, according to BoE Governor Andrew Bailey.

Bailey expressed caution regarding the potential ramifications of U.S.-Iran tensions on energy prices and inflation, but noted that domestic inflationary pressures appear subdued.

The decision was made by a 6-3 vote, with one policymaker pushing for a rate hike. UK bond yields reflected this sentiment, falling 12 basis points to 4.338% in a significant daily dip.