The Bank of England kept its key interest rate on hold for the fifth time this year on Thursday after a bigger-than-expected drop in the inflation rate. This was reported by Qazaqyia.kz citing Associated Press.
The monetary policy committee voted 6-3 to keep the rate at 3.75%, in line with expectations. Policymakers have kept the rate at that level since December after four rate cuts in 2025.
The split decision highlights tensions among central banks. The U.S. Federal Reserve on Wednesday kept its key rate at a range of 3.5% to 3.75%, with Chairman Kevin Warsh saying the Fed "will not hesitate to act" to control inflation.
Consumer price inflation in the U.K. slowed to 2.6% in the 12 months through June from 2.8% the previous month. However, inflation remained above the bank's 2% target for a 21st consecutive month.
Renewed attacks by the United States and Iran sent oil prices soaring. Brent crude jumped to more than $100 a barrel on July 23 and traded at about $92 on Thursday.
Economists are closely watching the tax and spending policies of new Prime Minister Andy Burnham to see if his efforts to shield consumers and spur growth are likely to add to inflation.