Economy · Bank of England · ArchiveBank of England Holds Rates at 3.75% as 6-3 Vote Exposes Deep DivideAired July 31, 2026 at 1:10 AM UTCWritten September 7, 2026 at 9:22 PM UTCRead the write-upThis storyTranscript · LOADING0:00The Bank of England held its benchmark0:02interest rate at 3.75% today, but the0:056-3 vote exposed a sharp divide over0:07whether to hike now. Three policymakers,0:10Megan Green, Catherine Mann, and Huw0:12Pill, dissented in favor of an immediate0:14quarter-point increase, warning that0:16Middle East tensions could reignite0:18inflation. Governor Andrew Bailey said0:20there is little evidence so far that0:21higher energy prices are feeding through0:23to broader prices, but he acknowledged0:25the uncertain outlook. The committee is0:27watching whether a sustained oil spike0:29would flip the calculus.0:30>> Oil remains at around $90 a barrel, a0:33level HSBC's Simon Wells says is not yet0:36enough to topple the global economy0:38given weak domestic demand, but the0:40outlook hinges on geopolitical0:42flashpoints.0:49Simon Wells told Reuters there is every0:51chance the bank gets through the year0:52without a single rate rise, provided the0:54Middle East situation does not escalate0:56further. Yet, Wells also cautioned that0:58the US Federal Reserve could be falling1:00behind on inflation, with 30-year1:02Treasury yields at a 19-year high, a1:04signal that markets are losing faith in1:05the Fed. For British households and1:07businesses, the hold means mortgage1:09costs stay elevated, and the path1:11forward remains murky. The bank's own1:13communication style has been compared to1:15the creative ambiguity of the Mervyn1:16King era, leaving borrowers to guess at1:19the next move. The crucial question now1:21is whether a further flare-up in the1:23Middle East pushes energy costs high1:24enough to flip the committee toward a1:26hike, or whether Bailey's cautious path1:28holds. The next policy clues come with1:30the August report.Explore with HeyDexThe shortThe short ↗