The Bank of England kept its benchmark rate at 3.75% on July 29, with the Monetary Policy Committee voting 6-3 to hold. Three members advocated for a 25 basis point hike to 4%, compared to two months earlier when the vote was 7-2 in favor of holding. CPI inflation reached 2.6% in June 2026, remaining above the Bank’s 2% target, primarily driven by surging energy prices linked to the Middle East conflict. The Bank Rate had peaked at 5.25% in 2023 before following a gradual easing path. The next MPC meeting is scheduled for September 2026 with fresh inflation data, updated energy forecasts, and wage growth trends.
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