BOE Keeps Rates Steady Amid Energy Price Risks

The Bank of England's Monetary Policy Committee (MPC) made a split decision to keep interest rates at 3.75% on Thursday, after a 6-3 vote.

Bank Governor Andrew Bailey stated that risks to energy prices lie to the upside due to repeated resumptions of conflict and lower than usual European gas stock levels.

Bailey also noted that there is little evidence yet of second-round effects from higher energy prices, but warned that it's too early to take comfort in this.

Deputy Governor Sarah Breeden shared similar concerns about the global inflationary environment and said she will continue to focus on how second-round effects are likely to evolve.