The Bank of England left its key interest rate at 3.75 percent on Thursday, extending the pause that began in December 2025. Members of the Monetary Policy Committee are weighing the inflationary consequences of the Iran war against signs of resilience in other parts of the economy.
The decision came a day after official figures showed stable inflation in Britain. Consumer prices rose 2.8 percent in May compared with a year earlier, matching the April figure and falling short of economists’ forecasts of 3 percent.
Although inflation remains above the central bank’s 2 percent target, the current figure fuels hope that the price pressure from rising oil and gas prices after the start of the Iran war is less severe than initially feared.
Source: de.euronews.com
