Fed Hikes Rate While Bank of England Holds Steady Amid Energy Price Inflation

The Federal Reserve raised its benchmark interest rate for the first time since 2023 on September 16, while the Bank of England chose to hold steady just a day later.

However, in a surprising twist, both central banks landed on the same rate, 3.75%, 4.00%. The Fed's decision was unanimous, with all 12 members voting in favor of the hike.

The Bank of England, on the other hand, voted 6-3 to leave its interest rate unchanged, despite UK inflation climbing to 3.1% in August and expected to rise further.

Both central banks cited the same reason for their decisions: the energy price spike tied to the Middle East conflict.