FX.co ★ Bank of England Keeps Rates Steady

The Bank of England voted 7–2 to keep Bank Rate unchanged at 3.75% in June 2026, as policymakers balanced easing inflation against ongoing uncertainty stemming from volatile global energy markets linked to tensions in the Middle East. Two members of the Monetary Policy Committee argued for a 0.25 percentage point increase to 4%. Officials noted that global energy prices have fallen since the previous meeting following recent developments in the Middle East, but remain high and volatile compared with pre-conflict levels. UK CPI inflation has slowed to 2.8%, though the Bank expects it could pick up again later this year as earlier energy price increases continue to pass through the economy. Policymakers cautioned that the risk of second-round effects in wages and prices will rise the longer energy costs stay elevated. At the same time, the labour market is showing signs of cooling and overall economic momentum appears to be weakening, which could help dampen inflationary pressures.