Saturday, June 20th 2026 - 06:28 UTC
The impact of the energy shock and Middle East events on the UK economy remains uncertain, BoE MPC
The Bank of England’s Monetary Policy Committee (MPC) voted by a majority of 7–2 to maintain Bank Rate at 3.75%. Two members voted to increase Bank Rate by 0.25 percentage points, to 4% during the MPC meeting on June 18.
In its release MPC argues that global energy prices have fallen since the previous meeting in response to events in the Middle East, but 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.
