Bank of England holds rates unchanged at 3.75%

The Bank of England held interest rates unchanged at 3.75% on Wednesday, keeping policy steady as it weighed rising inflation risks and the fallout from higher energy prices.

The central bank’s Monetary Policy Committee voted 8-1 to leave Bank Rate at 3.75%, according to live coverage and official materials. AP reported the decision shortly after the announcement, while Reuters had expected a hold ahead of time.

Governor Andrew Bailey said higher inflation risks were a concern, and The Guardian reported that the Bank warned higher inflation is unavoidable. The decision comes as policymakers assess the effect of Middle East tensions on energy markets and the broader UK outlook.

The Bank’s official site continues to show 3.75% as the current Bank Rate. The April 30 decision is the latest in a run of cautious policy moves as officials balance stubborn inflation against a softer growth backdrop.

Markets will now look to the full minutes and any forward guidance for clues on how soon the Bank might consider moving again.