The Bank of England kept its key interest rate on hold for the fifth time this year on Thursday after a bigger-than-expected drop in the inflation rate last month gave policymakers breathing space to assess the fallout from renewed fighting in Iran.
Interest Rate Decision
The bank’s monetary policy committee voted 6-3 to keep the rate at 3.75%, in line with the expectations of most economists. Policymakers have kept the rate at that level since December after four rate cuts in 2025.
Consumer price inflation in the U.K. slowed to 2.6% in the 12 months through June from 2.8% the previous month, according to the latest figures from the Office for National Statistics. While the drop was bigger than economists expected, inflation remained above the bank’s 2% target for a 21st consecutive month.
Renewed attacks by the United States and Iran in the Middle East sent oil prices soaring this month due to concerns about the continued disruption of traffic in the Strait of Hormuz, through which a fifth of all crude oil and natural gas traded once passed in peacetime.
Original reporting: KTBS 3 (Shreveport) — read the source article.
