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BoE Holds Rate 3.75% as Inflation Risks Persist

6/25/2026

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Story summary
  • Bank of England kept the Bank Rate at 3.75% after a 7-2 vote on June 23 2026.
  • MPC external economist Alan Taylor said hold is correct because Middle-East conflict and energy-price shocks could keep inflation high.
  • The Bank expects inflation to peak at 3.25% in 2026 and to fall toward a 3% neutral rate if pressures ease.
  • Two MPC members voted for a 4% rate but were outvoted by the majority.