The Bank of England kept the benchmark interest rate unchanged at 3.75%, in line with general market expectations. Despite the escalation of the conflict in the Middle East, which may push up energy prices and increase inflationary pressure, the Bank of England chose to stay on hold. In recent months, UK inflation has continued to fall short of market expectations, and economic activity has remained relatively resilient. However, Bank of England officials are increasingly worried that continued disturbances in energy supply will drag down economic growth and push the domestic economy to face wider upward pressure on prices. The Bank of England's 9-member monetary policy committee made this decision after the Federal Reserve announced its interest rate decision. Previously, the Federal Reserve also kept interest rates unchanged, but 3 of the 12 voting members advocated an immediate rate increase. The ECB also kept interest rates unchanged earlier this month, while hinting at a possible rate hike in September.

The Bank of England kept the benchmark interest rate unchanged at 3.75%, in line with general market expectations. Despite the escalation of the conflict in the Middle East, which may push up energy prices and increase inflationary pressure, the Bank of England chose to stay on hold. In recent months, UK inflation has continued to fall short of market expectations, and economic activity has remained relatively resilient. However, Bank of England officials are increasingly worried that continued disturbances in energy supply will drag down economic growth and push the domestic economy to face wider upward pressure on prices. The Bank of England's 9-member monetary policy committee made this decision after the Federal Reserve announced its interest rate decision. Previously, the Federal Reserve also kept interest rates unchanged, but 3 of the 12 members with voting rights advocated an immediate rate increase. The ECB also kept interest rates unchanged earlier this month, while hinting at a possible rate hike in September.