Bank of England Maintains Interest Rate at 3.75% Again

WHO:

ABC News - The Bank of England's Monetary Policy Committee

ABC News - U.S. Federal Reserve, Chairman Kevin Warsh

ABC News - New Prime Minister Andy Burnham

WHAT:

ABC News - The Bank of England kept its key interest rate at 3.75% for the fifth time this year.

ABC News - The monetary policy committee voted 6-3 to maintain the rate.

ABC News - Consumer price inflation in the U.K. slowed to 2.6% in the 12 months through June.

ABC News - Brent crude oil prices jumped to more than $100 a barrel on July 23 from less than $71 three weeks earlier.

WHERE:

ABC News - London, United Kingdom

ABC News - Strait of Hormuz, Middle East

WHEN:

ABC News - The Bank of England has kept the rate at 3.75% since December.

ABC News - Inflation remained above the bank’s 2% target for a 21st consecutive month.

WHY:

ABC News - The decision to keep the interest rate on hold was influenced by a bigger-than-expected drop in the inflation rate and concerns about renewed fighting in Iran.

ABC News - Policymakers are assessing the fallout from renewed fighting in Iran and its potential impact on inflation.

HOW:

Bloomberg Markets - The Bank of England's Monetary Policy Committee voted six-three in favor of keeping interest rates on hold.

(UPDATED July 30, 2026 12:26 UTC)

The Bank of England's Monetary Policy Committee has decided to keep its key interest rate at 3.75% for the fifth time this year, with a vote of six to three in favor of this decision. This comes as consumer price inflation in the U.K. slowed to 2.6% over the past year, while Brent crude oil prices surged to over $100 a barrel just a week ago. Policymakers are closely monitoring the situation, particularly the renewed fighting in Iran, which could have significant implications for inflation and economic stability.