UK BOE Monetary Policy Report

The Bank of England voted to keep its key interest rate on hold at 3.75% on Thursday, as widely expected by economists, as the Iran war continues to pose a dilemma for policymakers. The central bank was widely expected to stand pat on rates as it waits to see how the energy price crunch caused by the Iran war, and a concurrent reignition of inflationary pressures in the U.K., manifest themselves in the economy. The bank’s Monetary Policy Committee voted in an 8-1 split to maintain the benchmark rate, known as “Bank Rate”, at 3.75%, ...

Our Monetary Policy Committee (MPC) decides what monetary policy action to take. The MPC sets and announces policy eight times a year (roughly once every six weeks). In this video, the MPC discusses the decisions taken in April 2026 and answers questions from the press.

The Bank of England is poised to keep rates on hold at its April meeting. But will it push back against market expectations of two rate hikes by year-end? The Bank was evidently caught off guard by the reaction to its March decision, which saw even the most dovish officials appear open-minded about hiking rates. Governor Andrew Bailey told Reuters in the days after that investors were “getting ahead of themselves”. We doubt his views have changed since then, but we suspect the Bank will be reluctant to push back too hard on market ...

As expected, the Bank of England’s Monetary Policy Committee (MPC) voted to keep the Bank Rate unchanged at 3.75%. The vote was notably dovish, with a 5-4 split: the usual doves, Dhingra and Taylor, were joined by Ramsden and Breeden in calling for a 25bp cut to 3.50%. This wasn’t expected. The central bank expects inflation to be around the 2% target from April, supported by measures announced in the Autumn Budget. In weighing the risks of persistent inflation against signs of increasing labour market slack, the MPC noted that the ...