Bank of England holds rates at 3.75%

Energy shock impact remains unclear

Michael Nelson
clock • 2 min read

The Bank of England’s Monetary Policy Committee (MPC) has decided to hold interest rates at 3.75% for the fourth successive time today (18 June) amid a mixed economic backdrop.

Seven MPC members opted to hold rates, with two members (Megan Greene and Huw Pill) voting to hike rates by 25bps to 4%. MPC members said that "the impact of the energy shock on the UK economy remains uncertain". The MPC added: "Monetary policy cannot influence energy prices but is being set to ensure that the economic adjustment to them occurs in a way that achieves the 2% inflation target sustainably. "The policy stance required to achieve this will depend on the scale and duration of the shock, and how it propagates through the economy." The move comes after the US Federal Re...

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