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Bank Holds Rate Amid Rising Inflation Concerns

3/19/2026

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Summary

Story summary

The Bank of England's Monetary Policy Committee held the Bank rate at 3.75% in a unanimous decision.
Inflation is forecast to rise to 3.5% from 2%, as energy prices rise amid the US-Israel war on Iran.
Governor Andrew Bailey warned that prolonged energy disruption could push household energy bills higher.
Markets expect rate hikes later this year, and some economists say the conflict could affect UK living standards and inflation.

History

Historical Context

The Bank of England cut interest rates to a historic low of 0.5% in March 2009 amid the global financial crisis, which began in 2007 and peaked in 2008. This crisis led to significant government interventions, including a £137 billion bailout of banks. Today, the Bank's rate stands at 3.75%, with inflation concerns resurfacing due to geopolitical tensions affecting energy supplies.

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Story summary

The Bank of England's Monetary Policy Committee held the Bank rate at 3.75% in a unanimous decision.
Inflation is forecast to rise to 3.5% from 2%, as energy prices rise amid the US-Israel war on Iran.
Governor Andrew Bailey warned that prolonged energy disruption could push household energy bills higher.
Markets expect rate hikes later this year, and some economists say the conflict could affect UK living standards and inflation.

1 / 2