Published • loading... • Updated
Bank of England keeps interest rates at 3.75% as Iran conflict weighs on economy
Seven of nine policymakers backed the hold as inflation stayed above target and U.K. growth remained weak, Reuters polling showed.
- On Thursday, the Bank of England's Monetary Policy Committee held its key interest rate at 3.75%, matching market expectations with LSEG data showing a 96% chance of no change ahead of the decision.
- Policymakers noted that inflation cooled to 2.8% in May, though the drop stems from a temporary energy price cap change set to rise by 13% later this summer, leaving the economy vulnerable.
- Seven of the nine-person MPC voted to maintain the rate, while two members preferred a hike. Governor Andrew Bailey said, "Oil prices have fallen in recent days, and that s encouraging."
- Meanwhile, the Bank of Japan lifted its policy rate to 1% on Tuesday, a 31-year high, while the European Central Bank recently raised rates to combat the energy crisis.
- MPC projections show inflation remaining under 3% for three months before potentially rising, while Donald Trump's agreement with Iran securing 60-day passage through the Strait of Hormuz provides geopolitical relief.
Insights by Ground AI
25 Articles
25 Articles
The central bank holds on to the key rate of 3.75 percent. Economists in the UK do not expect interest rates to rise this year. Most recently, the country had driven a loose course.
·Düsseldorf, Germany
Read Full Article
Associated Press News+5 Reposted by 5 other sources
Bank of England holds main interest rate at 3.75% as Iran war inflation pressures ease
The Bank of England is holding its main interest rate at 3.7% as the inflation pressures on the British economy have become more benign after the U.S. and Iran signed a deal to sign deal to end their war.
·New York, United States
Read Full Article
Father's Day SaleGet 40% off Vantage subscriptions for yourself or a friend.Get Started
Coverage Details
Total News Sources25
Leaning Left7Leaning Right2Center8Last UpdatedBias Distribution47% Center
Bias Distribution
- 47% of the sources are Center
47% Center
L 41%
C 47%
12%
Factuality
To view factuality data please Upgrade to Premium
