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Bank of England holds interest rates at 3.75% despite rising inflation
Markets see more than an 80% chance of a hold as U.K. inflation rises to 3.1% and motor fuel costs jump 23%, ONS data showed.
- The Bank of England's Monetary Policy Committee voted 6–3 to hold the benchmark interest rate at 3.75% for the sixth consecutive meeting.
- The decision comes despite mounting pressure to curb inflation, which rose to 3.1% in August—up from 2.9% in July and well above the central bank's 2% target.
- Central bank officials pointed to persistent energy price spikes, driven largely by ongoing conflict and geopolitical tensions involving Iran, as a major factor fueling the recent uptick in domestic inflation.
- The MPC weighed rising cost-of-living pressures against a sluggish domestic economy marked by slowing wage growth, falling job vacancies, and unemployment hovering around 5%.
- Financial markets and economic analysts increasingly project that the central bank will be forced to implement an interest rate hike at its next meeting in November, potentially raising the base rate to 4.0%.
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8 Articles
Coverage Details
Total News Sources8
Leaning Left3Leaning Right3Center2Last UpdatedBias Distribution38% Left, 37% Right
Bias Distribution
- 38% of the sources lean Left, 37% of the sources lean Right
38% Left
L 38%
C 25%
R 37%
Factuality
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