Bank Of England Keeps Rate On Hold

(RTTNews) - The Bank of England kept its interest rate unchanged, as widely expected, in a split vote on Thursday.

The Monetary Policy Committee, led by Governor Andrew Bailey, voted 6-3 to hold the bank rate at 3.75 percent, which is the lowest rate since June 2023.

Previously, the central bank had reduced the rate by 25 basis points each in August and November last year.

A majority of members said holding interest rate, combined with the significant tightening of financial conditions that had occurred since the conflict started, was providing sufficient insurance against the upside risks to inflation stemming from fluctuations in energy prices.

Megan Greene, Catherine Mann and Huw Pill sought a quarter-point rate hike. They believed that a proactive increase in Bank Rate would reduce the probability of second-round effects setting in.