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Business·4/30/2026AI summary
Bank of England holds rates at 3.75% but warns higher inflation unavoidable
The Bank of England has left interest rates unchanged at 3.75% but warned that higher inflation is unavoidable due to the Middle East conflict. The MPC voted 8-1 to hold, with only chief economist Huw Pill favoring a hike to 4%. UK inflation rose to 3.3% in March. The Bank presented three scenarios: in the worst case (C), oil reaches $130/barrel, inflation peaks at 6.2% in Q1 2027, and rates would need to rise to 5.25%. Governor Andrew Bailey said the decision depends on the duration of the energy price shock.
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Guardian Business4 min read
