Lates News

The Bank of England kept interest rates unchanged at 3.75%, in line with market expectations, while warning that further rate hikes may be needed if escalating Middle East conflicts drive up inflationary pressures. Six rate-setters voted to keep rates on hold, including Governor Bailey. The Monetary Policy Committee's stance was largely consistent with the July meeting. In a speech, Bailey said the global energy shock has so far had limited impact on UK prices and wages. But he added, "The longer this volatility persists, the greater the impact on inflation, and the more likely we are to raise Bank Rate." Alongside the rate decision, the bank announced it was abandoning plans to sell long-term government bonds and said it would complete the reduction of its 488 billion debt portfolio by September 2034.