Bank of England Holds Rates at 3.75% as 3.1% Inflation Fuels Hike Warning
Updated
Updated · The New York Times · Sep 17
Bank of England Holds Rates at 3.75% as 3.1% Inflation Fuels Hike Warning
3 articles · Updated · The New York Times · Sep 17
Summary
At 3.75%, the Bank of England left borrowing costs unchanged Thursday but said the Middle East war is raising the odds of a rate increase soon.
UK inflation hit 3.1% in August — the fastest since March — after higher gasoline and diesel prices added to broader energy-driven price pressure.
Brent crude has stayed above $100 a barrel, European natural gas prices are at a more than three-year high, and average household energy bills are set to rise about 4% next month.
The hold leaves the BOE out of step with peers after the Federal Reserve raised rates Wednesday, while the ECB has already hiked twice since the war began and the Bank of Japan is expected to move Friday.