19/03/2026
Bank of England decision makers decided to hold the base interest rate at 3.75% today as inflation comes under pressure from the war in the Middle East.
Big increases in oil and gas prices could force inflation up, and the Bank would have been mindful of this.
Governor Andrew Bailey (pictured) and other members of the Bank’s Monetary Policy Committee (MPC) had been expected to reduce the rate this time after holding it in February.
But that was before the war with Iran broke out nearly three weeks ago, and although inflation fell to 3% in January from 3.4% in December, it could now be pushed up.
And major lenders have been raising their mortgage rates as the war starts to impact the economy. The Bank’s ratesetters meet again at the end of April and then in June.
