The Bank of England’s Monetary Policy Committee (MPC) voted 8–1 to keep Bank Rate at 3.75 percent, judging that the energy-led rise in inflation risks is balanced by a weakening domestic economy, a loosening labour market and tighter financial conditions that will help contain price pressures. After 75 bp of cumulative easing between February and December 2025, the policy rate has been unchanged in 2026. No changes were announced to the operational framework or liquidity management. Consumer price index (CPI) inflation climbed to 3.3 percent in March and is projected to edge higher later in 2026 as fuel and utility costs reflect the recent energy shock; the MPC sees “material” risks of second-round wage-price effects but also notes that slack is emerging and financial conditions have firmed since the conflict began. The Middle East war has injected acute uncertainty into global energy markets, lifting oil and gas prices and tightening UK financial conditions. The Committee stressed it will “monitor closely” how the shock propagates through prices, wages and activity and “stands ready to act” to keep CPI on track to its 2 percent target over the medium term.
Bank of England 2026-04-30
Bank of England keeps Bank Rate unchanged at 3.75 percent
Bank of England’s Monetary Policy Committee left Bank Rate unchanged at 3.75% by an 8–1 vote, judging energy-driven inflation risks are offset by softer domestic activity, loosening labour conditions and tighter financial markets; no operational or liquidity changes were made. CPI inflation rose to 3.3% in March and is forecast to tick higher in 2026 as fuel and utility costs feed through, and the MPC said it stands ready to act if second-round effects from the Middle East energy shock threaten its 2% target.