The Bank of England has left interest rates unchanged at 3.75%.
The UK central bank’s rate-setting monetary policy committee (MPC) voted to leave borrowing costs on hold at noon, after its latest meeting.
The vote by the nine-member committee to keep rates on hold was split eight to one. The Bank’s chief economist Huw Pill voted for a rate hike to 4%.
The Bank is charged with keeping UK inflation at a target of 2% in the medium term. It has lowered interest rates six times since mid-2024, and had been expected to cut again this year before the US-Israeli war on Iran began on 28 February.
However, soaring energy costs as a result of the effective closure of the strait of Hormuz have began to push up inflation around the world.
Inflation in the UK rose to 3.3% in March, from 3% in February. Petrol and diesel prices have soared since the start of the Middle East conflict, reflecting a jump in the global oil price to above $100 a barrel.
