Bank of England keeps interest rates unchanged at 3.75%

April 30, 2026 (MLN): The Bank of England’s Monetary Policy Committee (MPC) voted by an 8–1 majority to hold the bank rate at 3.75%.

The decision comes against a backdrop of heightened uncertainty over global energy prices due to the ongoing conflict in the Middle East.

While monetary policy cannot directly influence energy costs, the Committee said it will act to ensure the economy adjusts in a way that keeps inflation on track to meet the 2% target.

In its April Monetary Policy Report, the Bank outlined three possible scenarios for the UK economy, reflecting varying impacts of energy price shocks.

CPI inflation has risen to 3.3% and is expected to increase further later this year as higher energy costs feed through.

 Policymakers also warned of the risk of second-round effects on wages and prices, according to a press release by the Bank.

However, a loosening labour market and signs of a weakening economy could help contain inflationary pressures. Financial conditions have also tightened since the conflict began, which is expected to support a gradual easing in inflation over time.

Taking all these factors into account, the MPC judged it appropriate to keep rates unchanged for now, while reaffirming its readiness to act if necessary to ensure inflation returns sustainably to the 2% target.

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