Bank of England Holds Rates Amid Inflation Concerns

The Bank of England keeps rates steady but signals potential hikes to curb inflation from Iran war impacts. Key insights on economic outlook and policy moves.

Editorial Desk

September 18, 2026 One Min Read

POLICY WIRE — London, United Kingdom — The Bank of England kept interest rates unchanged Thursday, signaling a potential increase in the near future to address rising inflation linked to global energy price volatility.

The decision came as the central bank acknowledged the growing impact of the ongoing conflict in Iran, which has disrupted oil and gas markets. While six members of the Monetary Policy Committee voted to maintain current rates, three supported a quarter-point increase to 4%.

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Despite the pause, financial markets expect a rate hike in either November or December, with Governor Andrew Bailey emphasizing that prolonged energy price shocks could push inflation further above the 2% target. The next policy meeting is scheduled for November 5, where officials will review updated economic forecasts and consider a potential shift in monetary policy.

Reporting by Policy-Wire (PW)

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