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Bank of England to sit tight as Middle East conflict turns up inflation heat
The Bank of England on Thursday looks set to delay an interest rate cut that seemed a sure bet before the war in the Middle East, and it will probably sound vague about its next steps while it waits to see the extent of the inflationary shock. The BoE has cut borrowing costs more slowly than the European Central Bank since 2024 because of its worries about Britain’s stubbornly stronger price pressures. Just when it looked like British inflation was going to drop to the BoE’s target of 2% and stay there, the jump in oil and gas prices threatens to push it back up to 3% or higher. That is still a far cry ... (full story)
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From invezz.com | Mar 19, 2026
The Bank of England (BoE) held its benchmark interest rate steady on Thursday but signaled a more hawkish stance as rising energy prices linked to the Middle East conflict threaten to push inflation higher. The nine-member Monetary Policy Committee (MPC) voted unanimously to keep rates unchanged at 3.75%, marking its first unanimous decision in over four ...
At its meeting ending on 18 March 2026, the Monetary Policy Committee (MPC) voted unanimously to maintain Bank Rate at 3.75%. Conflict in the Middle East has caused a significant increase in global energy and other commodity prices, which will affect households’ fuel and utility prices and have indirect effects via businesses’ costs. Prior to this, there had been continued disinflation in domestic prices and wages. CPI inflation will be higher in the near term as a result of the new shock to the economy. Monetary policy cannot influence global energy prices but aims to ensure that the economic adjustment to them occurs in a way that achieves the 2% target sustainably. The MPC is alert to the increased risk of domestic inflationary pressures through second-round effects in wage and price-setting, the risk of which will be greater the longer higher energy prices persist. The MPC is also assessing the implications for inflation of the weakening in economic activity that is likely to result from higher energy costs. *BANK OF ENGLAND HOLDS KEY INTEREST RATE AT 3.75% IN 9-0 VOTE *BOE SAYS ALL MEMBERS 'STAND READY TO ACT' TO CONTAIN INFLATION *BOE SEES INFLATION AT OVER 3% IN FEBRUARY, NEAR 3.5% IN MARCH 
Bank of England votes unanimously to keep rates on hold as Iran war clouds outlook The Bank of England’s Monetary Policy Committee has voted “unanimously” keep its benchmark interest rate on hold at 3.75% on Thursday. Before the war in Iran erupted in late February, the BOE had been expected to cut its key interest rate, known as ‘Bank Rate,’ at its March meeting, but the conflict has sent global energy prices soaring, clouding the outlook for inflation and growth. “Conflict in the Middle East has caused a significant increase in global energy and other commodity prices, which will affect households’ fuel and utility prices and have indirect effects via businesses’ costs,” the BOE said in a statement.
Bank of England votes unanimously to keep rates on hold as Iran war clouds outlook The Bank of England’s Monetary Policy Committee has voted “unanimously” keep its benchmark interest rate on hold at 3.75% on Thursday. Before the war in Iran erupted in late February, the BOE had been expected to cut its key interest rate, known as ‘Bank Rate,’ at its March meeting, but the conflict has sent global energy prices soaring, clouding the outlook for inflation and growth. “Conflict in the Middle East has caused a significant increase in global energy and other commodity prices, which will affect households’ fuel and utility prices and have indirect effects via businesses’ costs,” the BOE said in a statement.
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