The Bank of England kept its benchmark interest rate unchanged at 3.75% on July 30, marking its first monetary policy decision since Andy Burnham became Prime Minister on July 20. Inflation stands at 2.6%, above the central bank’s 2% target, but the Monetary Policy Committee voted 7-2 to hold rates. Energy price increases linked to Middle East disruptions tied to the Iran conflict remain the main driver of above-target inflation, although oil prices have recently declined. For crypto markets, the rate hold is a mild positive for risk assets, with a potential rate cut later in 2026 possible if inflation converges toward the 2% target.
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