UK BOE Monetary Policy Report

The BoE is set to hold Bank Rate at 3.75% at this week’s meeting as domestic inflation pressures still look contained despite the volatile energy price backdrop. The current guidance, which is limited and non-committal but has a tightening bias (e.g. the MPC “stands ready to act as necessary”) is likely to be left unchanged. We expect a repeat of the 7-2 vote split from the previous meeting, with Huw Pill and Megan Greene again dissenting in favour of a hike. Catherine Mann, who is most likely to move over to the hike camp, has ...

The rise in energy prices poses a fresh dilemma for the Bank of England, but we still don’t think the bar for a rate hike has been met. We’re expecting another 7-2 vote to keep rates on hold this Thursday. The Bank’s updated forecasts are likely to show inflation fairly close to 3% in the second half of this year and into early next. And crucially, that’s well below the 4% threshold that the Bank has previously argued is statistically more likely to trigger second-round effects and a longer-lasting bout of price pressure. That ...

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.