Bank of England Holds Rates as Inflation Risks Put Future Hikes Back on the Table

London, 30 April 2026 – The Bank of England has kept interest rates unchanged at 3.75 percent, but warned that inflation risks have intensified as higher energy prices linked to the Iran war threaten to reverse earlier expectations for policy easing.

The decision was approved by an 8-1 vote of the Monetary Policy Committee, with Chief Economist Huw Pill dissenting in favour of raising rates to 4.0 percent. The split underlined growing concern inside the central bank that inflation could become more persistent if energy costs continue feeding into business prices, wages and household expectations.