BoE Keeps Rates Steady Amid Renewed US-Iran Tensions

The Bank of England (BoE) has maintained its interest rates at 3.75%, despite renewed conflict between the US and Iran, which prompted a rate hike vote from one policymaker.

Catherine Mann joined Megan Greene and Chief Economist Huw Pill in voting for a rate increase to 4%. The rest of the Monetary Policy Committee (MPC) stuck with Governor Andrew Bailey's wait-and-see approach, aiming to prevent inflation from overshooting its 2% target by too much this year.

The BoE's central projection shows inflation rising to 3.2% later this year from a 15-month low of 2.6% in June and staying above target until early 2028.