The Bank of England, serving as the UK's central bank, has maintained its base interest rate at 3.75% for the sixth consecutive meeting. This decision comes amid an annual inflation rate of 3.1%, which exceeds the target of 2%. The Monetary Policy Committee voted 6-3, with three members advocating for an increase to 4%.
Andrew Bailey, the Governor of the Bank, indicated that ongoing fluctuations in energy prices heighten the likelihood of a rate hike in the future. Additionally, the Bank of England has paused auctions for its remaining portfolio of government bonds, which is valued at £488 billion.