The Bank of England has maintained its benchmark interest rate at 3.75%, marking the fourth consecutive meeting where policymakers have paused the monetary easing cycle.
The decision reflects mounting pressure from a surge in oil prices, which threatens to reignite inflationary pressures and dampen economic growth in the UK.
This hold comes even as global markets have rallied on hopes of an interim peace deal between the US and Iran, which had previously cooled oil prices and sparked speculation about earlier rate cuts.
The central bank’s stance underscores the delicate balance policymakers face between supporting economic recovery and containing inflation.
While the prospect of a US-Iran deal offered a temporary reprieve for energy markets, the recent spike in oil prices has reintroduced uncertainty.
Investors are now recalibrating expectations for future rate cuts, with the Bank of England signaling that it will not ease policy until inflation risks are more firmly under control.