BoE Keeps Rates Steady Amid Middle East Conflict Uncertainty

The Bank of England has kept interest rates unchanged at 3.75% in its latest decision on Thursday, despite uncertainty linked to the war in the Middle East.

In a split decision, six members of the bank's monetary policy committee (MPC) voted to keep the rate the same, while three members, Huw Pill, Megan Greene, and Catherine Mann, voted for rates to be increased to 4%.

The base rate helps dictate how expensive it is to take out a mortgage or a loan. Many lenders had been chopping rates early this year in expectation of the Bank of England lowering its base rate but started increasing rates sharply following the outbreak of the Middle East conflict.

The re-escalation of the conflict has put upward pressure on mortgage rates, while savings rates are also likely to increase due to their link to the interest rate. The Bank's aim is to keep inflation at the 2% target rate set by the Government.