The Bank of England, acting as the UK’s central bank, has held its base interest rate at 3.75% for the sixth meeting in a row. This move comes as annual inflation sits at 3.1%, still well above the BoE’s 2% target.

MPC Decision and Vote Breakdown

The Monetary Policy Committee (MPC) voted to keep rates unchanged, with a 6–3 split. Three members pushed for a hike to 4%, but the majority opted to stay put.

Inflation and Forward Guidance

Governor Andrew Bailey pointed out that ongoing volatility in energy prices could mean more rate hikes ahead. Right now, inflation is running hot at 3.1%, overshooting the Bank’s 2% goal.

Gilts Auctions Paused

The Bank of England has also paused auctions for its remaining £488 billion portfolio of UK government bonds.