Last mentioned: Mar 19, 2026
Rate Decision
BoE holds rates at 3.75%, citing 'inflationary jolts' from the war.
BoE Rate Decision
The MPC votes to maintain the current Bank Rate, citing geopolitical and labor risks.
Policy Guidance
Governor Bailey issues 'ready to act' statement to maintain policy optionality.
Labor Data Release
UK unemployment figures show a surprising uptick to a 3-year high.
Conflict Escalation
Middle East tensions rise, causing a 5% spike in global oil prices.
Iran Conflict Begins
Outbreak of war in Iran triggers a sharp spike in energy and commodity prices.
Geopolitical Tension
Tensions in the Middle East escalate, impacting global oil futures.
Dovish Pivot
BoE signals potential for rate cuts in early 2026 as inflation cools.
The Bank of England has opted to keep interest rates unchanged, citing the dual pressures of an escalating Middle East conflict and rising domestic unemployment. Governor Andrew Bailey signaled that the Monetary Policy Committee remains prepared to intervene should global energy shocks or economic cooling intensify.
The Bank of England maintained its benchmark interest rate at 3.75% in a unanimous decision, citing heightened inflation risks from the escalating conflict in Iran. Policymakers have pivoted to a 'watchful' stance as surging energy costs threaten to derail the UK's path toward its 2% inflation target.