Back to today’s briefing

Story perspectives

Bank of England Holds Rates Amid Rising Inflation Concerns

3/20/2026

29 6 Full Breakdown

Summary

Story summary

The Bank of England is expected to keep the policy rate at 3.75% amid inflation concerns tied to the war in Iran.
Economists had anticipated a rate cut, with rising energy prices altering the outlook.
Data show UK wages rising at their slowest pace since late 2020, with inflation at 3% in January.
Analysts predict the Bank may need to tighten policy later this year if inflationary pressures persist.

History

Historical Context

In 1979, the Bank of England raised interest rates to combat inflation, which peaked at 13.4%, largely due to the 400% increase in oil prices from the OPEC crisis. This period also saw the Winter of Discontent, marked by widespread strikes and economic turmoil. Today, rising energy costs linked to the Iran conflict echo these past challenges, prompting renewed discussions on monetary policy tightening.

1 of 2

Story summary

The Bank of England is expected to keep the policy rate at 3.75% amid inflation concerns tied to the war in Iran.
Economists had anticipated a rate cut, with rising energy prices altering the outlook.
Data show UK wages rising at their slowest pace since late 2020, with inflation at 3% in January.
Analysts predict the Bank may need to tighten policy later this year if inflationary pressures persist.

1 / 2