Back to today’s briefing

Story perspectives

BoE Holds Rates as Inflation Hits 2.6% — Rolls-Royce Guides Up

7/30/2026

47 11 Full Breakdown

Summary

Bank Holds Rate

The Bank of England kept its benchmark rate at 3.75% on Thursday, with the FTSE 100 peaking at 10,979 before easing.
Rolls-Royce shares rose over five percent after raising full-year profit guidance and announcing a £5 billion buyback.
Shell shares gained 1.4 percent on an earnings beat driven by higher oil prices, despite a temporary Qatari LNG plant shutdown.
Rentokil Initial shares fell 17 percent after missing North American sales targets.

Summary

BoE Holds

The Monetary Policy Committee split 6-3 to keep the Bank of England rate at 3.75%.
Inflation fell to 2.6% in June, marking a 15-month low.
Prime Minister Andy Burnham introduced a temporary VAT cut on electricity, expected to shave 0.1 percentage point off inflation.
Two-year fixed mortgage rates rose to 5.11% from 4.25%.
The Bank of England now forecasts 1.1% GDP growth for 2026-27 and unemployment at 5.3% in 2027.

History

Historical Context

On 16 September 1992, while the United Kingdom held the EU Council presidency, the pound was expelled from the European Exchange-Rate Mechanism, forcing the Bank of England to intervene. The episode cost the Treasury roughly £3 billion, prompted a move to inflation-targeting monetary policy, and is seen as a key factor in the Conservatives’ 1997 electoral loss.

1 of 3

Bank Holds Rate

The Bank of England kept its benchmark rate at 3.75% on Thursday, with the FTSE 100 peaking at 10,979 before easing.
Rolls-Royce shares rose over five percent after raising full-year profit guidance and announcing a £5 billion buyback.
Shell shares gained 1.4 percent on an earnings beat driven by higher oil prices, despite a temporary Qatari LNG plant shutdown.
Rentokil Initial shares fell 17 percent after missing North American sales targets.

1 / 3