The Bank of England kept its key interest rate at 3.75% on 2026-07-30, marking the fifth consecutive hold as policymakers weighed persistent inflation risks against a cooling domestic economy. The Monetary Policy Committee voted 6-3 to maintain rates, with three members calling for an immediate increase to 4%.
UK inflation fell to 2.6% in June 2026, but the central bank warned that geopolitical tensions could push prices higher. Brent crude oil briefly rose above $100 a barrel in July, and the Bank cautioned that if conflict persists, inflation could reach 4.1% with energy costs remaining elevated.
The decision follows the US Federal Reserve's move to keep its key rate at 3.5%-3.75% the previous day. Domestically, Andy Burnham announced the removal of VAT on electricity bills, cutting household costs by £45 annually.