Bank of England leaves interest rates on hold and lowers inflation forecast amid Middle East ‘uncertainty’ – as it happened

Rolling coverage of the latest economic and financial news, including the latest UK jobs report and the Bank of England’s interest rate decision Newsflash: The Bank of England has voted to leave UK interest rates on hold. In a decision widely expected by economists, the BoE is maintaining Bank rate at 3.75%. The decision is not unanimous, though – two policymakers wanted to hike interest rates to 4%, but were outvoted by the other seven who voted to hold rates. double quotation markGlobal energy prices have fallen since the previous meeting in response to events in the Middle East. But they remain higher than pre-conflict and have continued to be volatile. The impact of the energy shock on the UK economy remains uncertain. Monetary policy cannot influence energy prices but is being set to ensure that the economic adjustment to them occurs in a way that achieves the 2% inflation target sustainably. The policy stance required to achieve this will depend on the scale and duration of the shock, and how it propagates through the economy. The Bank of England had cut rates six times since mid-2024 and was expected to continue doing so, before Trump’s Operation Epic Fury led to Iran