The Bank of England, by a majority vote of 6-3, decided to maintain its monetary policy and keep interest rates unchanged at 3.75%, as expected, at its meeting earlier today, Thursday, September 17th. This marks the sixth consecutive meeting where the rate has been kept at 3.75%. Three members voted to raise the rate by 25 basis points.

The Bank’s interest rate report stated that the ongoing conflict in the Middle East has contributed to higher oil prices since the previous meeting, and inflation rose to 3.1% in August and is expected to rise further in the coming quarters. Monetary policy is being designed to ensure that inflation falls sustainably to 2%.

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