New inflation data has reinforced expectations that policymakers will not need to increase interest rates at the next announcement on Thursday.

The Bank of England's MPC voted unanimously to hold rates at 3.75% as the Iran war reshapes UK inflation forecasts and shelves expected rate cuts.

The Bank’s Monetary Policy Committee (MPC) is set to keep interest rates at 3.75 per cent at a decision later this week.

British inflation held steady at 2.8% in May. This figure matches April's 13-month low. The Bank of England is set to announce its next interest rate decision tomorrow. Economists…

The base rate has been at 3.75 per cent since December 2025

The base rate has remained at 3.75 per cent since just before Christmas last year