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BoE Holds Rates; Burnham Cuts Power Tax, Oil Tops $100

7/31/2026

44 4 Full Breakdown

Summary

Bank of England Holds

The Bank of England kept its Bank Rate at 3.75% on 30 July 2026 after a 6-3 vote by the Monetary Policy Committee.
Inflation fell to 2.6% in June, a 15-month low, but the committee expects CPI to rise to 3.2% in 2026 and cites the US-Iran conflict and volatile energy as risks.
The pound rose 0.08% to $1.3376 as Prime Minister Andy Burnham announced a tax cut on domestic electricity bills.

Summary

Brent Crude Surge

Brent crude surged to over $100 a barrel on 23 July after the U.S.–Iran cease-fire collapsed.
The jump reflects market fears that renewed fighting could disrupt traffic through the Strait of Hormuz, which handles roughly one-fifth of global oil and LNG trade.
Economists are watching Prime Minister Andy Burnham’s tax and spending plans to gauge any added inflationary pressure from his consumer-shielding measures.

History

Historical Context

The October 1973 OAPEC embargo quadrupled oil prices, forcing a UK still reliant on imports to turn to coal; miners’ strikes after Heath’s 7% offer helped topple his government, and Wilson’s Labour gave a 35% wage rise while limiting home heating. Today the Bank of England’s 3.75% rate and Andy Burnham’s electricity tax cut echo those 1970s inflation-fighting moves.

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Bank of England Holds

The Bank of England kept its Bank Rate at 3.75% on 30 July 2026 after a 6-3 vote by the Monetary Policy Committee.
Inflation fell to 2.6% in June, a 15-month low, but the committee expects CPI to rise to 3.2% in 2026 and cites the US-Iran conflict and volatile energy as risks.
The pound rose 0.08% to $1.3376 as Prime Minister Andy Burnham announced a tax cut on domestic electricity bills.

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