The Bank of England, by a majority vote of 7-2, decided to maintain its monetary policy and keep interest rates unchanged at 3.75%, as expected, at its meeting earlier today, Thursday, April 30th. This marks the fourth consecutive meeting where the rate has been kept at 3.75%. Two members voted to raise the rate by 25 basis points.

The Bank’s interest rate report stated that global energy prices have fallen since the previous meeting in response to events in the Middle East, but they remain above pre-war levels and continue to fluctuate. Monetary policy cannot influence energy prices, but mechanisms are being developed to ensure economic adjustment to achieve the 2% inflation target sustainably.

Inflation, as measured by the Consumer Price Index, has fallen to 2.8% since the previous meeting, with expectations of a rise later this year due to the ongoing impact of energy prices. Interest rates faced by households and businesses remain higher than before the conflict, which will contribute to a gradual decrease in inflation.

In view of all the risks to the economic outlook, the Committee believes it is appropriate to maintain the base interest rate at this meeting. The Committee will continue to monitor the situation in the Middle East and global energy supplies and prices and is prepared to take the necessary actions to ensure that inflation remains on track to achieve the 2% target over the medium term.