US EditionBoE holds rates at 3.75% as inflation stays stubbornly above target
The Bank of England’s Monetary Policy Committee voted 5-4 to hold rates at 3.75% due to 3.4% inflation and signs of stronger economic growth, with further cuts likely later.
- On Thursday, the Bank of England kept its main interest rate at 3.75% as inflation remains above the 2% target, at 3.4%, and early data show the UK economy is picking up.
- After a December quarter-point cut, the BoE's recent actions reflect steady rate reductions about every three months and stronger early 2026 data raising inflation pressures, City forecasters said.
- The Monetary Policy Committee left the rate at 3.75%, with four members preferring a cut to 3.5%, leaving millions disappointed.
- The decision, in line with City forecasts, means no chance of a reduction in borrowing costs until mid March at the earliest, while expectations of future cuts are already feeding into pricing, especially at the short end of the market.
- Over the coming months, base effects from VAT on private school fees and a 26% spike in water charges will ease inflation at 3.4%, while some economists expect 50bps of cuts this year.
81 Articles
81 Articles
Bank of England Holds Interest Rate at 3.75 Percent
The Bank of England (BoE) kept its benchmark interest rate unchanged at 3.75 percent on Feb. 5, saying inflation is falling faster than expected but warning that risks to the outlook remain as the economy slows and unemployment rises. The decision to maintain the rate, announced by the central bank’s Monetary Policy Committee (MPC), was made in a 5–4 vote. The bank said it was keeping rates steady to ensure inflation returns to its 2 percent tar…
Monetary authority stated that a new reduction in interest rates is likely to be based on inflation prospects
The Bank of England's interest rate decision is highly controversial internally. Now the central bank leaves the key interest rate at 3.75 percent. Economists expect a next interest rate reduction for March.
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