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2026-09-17 19:16:09
[Bank of England Keeps Interest Rates Unchanged, Warns of Potential Rate Hikes Due to Escalating Middle East Tensions] ⑴ The Bank of England's Monetary Policy Committee voted to keep the benchmark interest rate unchanged at 3.70%, in line with market expectations. Six members, including Governor Bailey, supported the decision, while the remaining three favored a rate hike. ⑵ Bailey stated that the energy shock from the current Middle East geopolitical conflict has had a limited transmission effect on domestic prices and wages; however, if high volatility in the energy market persists and upward pressure on inflation increases, the probability of the central bank raising the benchmark interest rate will significantly rise. ⑶ The decision also adjusted the balance sheet reduction plan, shelving the plan to actively sell long-term government bonds, with the goal of reducing the total debt holdings by £462 billion by September 2034. ⑷ The committee's voting stance in this meeting was largely consistent with the voting pattern at the July policy meeting.
