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Bank of England makes interest rate decision with inflation expected to rise

Jump to contentThank you for registeringPlease refresh the page or navigate to another page on the site to be automatically logged inPlease refresh your browser to be logged inAllNewsSportCultureLifestyleInterest rates have been held (PA Archive)The Bank of England (BoE) has kept interest rates at 3.75 per cent, a level maintained since December 2025, despite forecasts of increasing inflation. The Monetary Policy Committee (MPC) voted 6-3 to hold rates, with the split vote suggesting an eventual rise is anticipated later in the year. Rising fuel costs, stemming from the conflict in the Middle East, are expected to fuel inflation, making a rate hike a key measure to control it. The decision to hold rates reflects concerns over the UK's sluggish economic growth, 5 per cent unemployment, and a struggling property market. Analysts predict rates could reach 4 per cent by winter, with a 56 per cent probability of a hike in November, pending the Chancellor's Budget and future pay awards. In fullBank of England holds interest rates – but rises expected in months aheadMore bulletinsThank you for registeringPlease refresh the page or navigate to another page on the site to be automatically logged inPlease refresh your browser to be logged in

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