Bank of England Set to Hold Rate at 3.75% for Fourth Meeting as Inflation Stays at 2.8%
Updated
Updated · BBC.com · Jun 17
Bank of England Set to Hold Rate at 3.75% for Fourth Meeting as Inflation Stays at 2.8%
3 articles · Updated · BBC.com · Jun 17
Summary
3.75% is widely expected to be the Bank of England’s benchmark rate again on Thursday, extending a pause to a fourth straight meeting after May inflation came in lower than feared.
2.8% annual inflation held steady in May, with food price growth slowing to a 17-month low, reinforcing the view that policymakers do not need to tighten immediately.
Oil prices have fallen near their lowest since the Iran conflict began after Donald Trump said a peace deal was signed and the Strait of Hormuz should reopen, easing near-term energy inflation risks.
13% higher Ofgem-capped household energy bills from July still point to a summer inflation pickup, and average new two-year fixed mortgage rates have climbed to 5.60% from 4.83% since March.
April’s MPC meeting had signaled rates could still rise this year after the energy shock, but some analysts now see no further increase in 2026 despite lingering uncertainty.