Bank of England makes interest rate decision with inflation expected to rise

• The Bank of England (BoE) has kept interest rates at 3.75 per cent, a level maintained since December 2025, despite forecasts of increasing inflation.
• The Monetary Policy Committee (MPC) voted 6-3 to hold rates, with the split vote suggesting an eventual rise is anticipated later in the year.
• Rising fuel costs, stemming from the conflict in the Middle East , are expected to fuel inflation, making a rate hike a key measure to control it.
• The decision to hold rates reflects concerns over the UK's sluggish economic growth, 5 per cent unemployment, and a struggling property market .
• Analysts predict rates could reach 4 per cent by winter, with a 56 per cent probability of a hike in November, pending the Chancellor 's Budget and future pay awards.

IN FULL

Bank of England holds interest rates – but rises expected in months ahead