The Bank of England's Monetary Policy Committee (MPC) decided at its meeting ending on 29 July 2026 to maintain the Bank Rate at 3.75%. Six members voted to keep the rate unchanged, while three members preferred an increase of 0.25 percentage points to 4%.
The MPC noted that crude and refined energy prices have remained volatile and higher than pre-conflict levels due to events in the Middle East. The impact of this energy shock on the UK economy is uncertain, with CPI inflation having fallen to 2.6% but expected to rise later in the year as higher energy prices continue to pass through.
The Committee judged that risks to the inflation outlook are tilted to the upside compared to its central projection. However, there remains scope for the outlook to change as events in the Middle East unfold. The MPC stated it is ready to act as necessary to ensure CPI inflation meets the 2% target in the medium term.