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, July 30th. This marks the fifth 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 global energy prices have remained volatile due to events in the Middle East, and their impact on the UK economy remains unclear.

Inflation, as measured by the Consumer Price Index (CPI), has fallen to 2.6% since the previous meeting, with expectations of a rise later this year as the impact of energy prices continues. Interest rates faced by households and businesses remain higher than before the conflict, which will contribute to a gradual decrease in inflation.

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.